# In the matter of Audico Forge Kamgar Sangathana vs. CA Ramchandra Dallaram Choudhary, RP, Adico Forge Pvt. Ltd.

> NCLAT judgment dated 2024-10-29. Citation: TCN-2024-NCLAT-00132. This appeal challenges the order dated 02.05.2024 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 29 Oct 2024
- **Citation:** TCN-2024-NCLAT-00132
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/audico-forge-kamgar-sangathana-vs-ca-ramchandra-dallaram-choudhary-rp-adico-forg-6cb8c1ca

## Summary

### Background

This appeal challenges the order dated 02.05.2024 passed by the National Company Law Tribunal, Mumbai Bench, Court-III in IA No.5826/2023, filed by the Resolution Professional (RP) for approval of the Resolution Plan. The Adjudicating Authority allowed the application and approved the Resolution Plan, leading to this appeal. The Corporate Insolvency Resolution Process (CIRP) against Adico Forge Pvt. Ltd. commenced on 23.06.2023, following an application by a Financial Creditor. The Appellant, Audico Forge Kamgar Sangathana, filed their claim with the Interim Resolution Professional (IRP). A Resolution Plan was submitted by Trinity India Forgetech Pvt. Ltd., which was approved by the CoC with 92.87% vote shares.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Adico Forge Pvt. Ltd. on 2023-06-23 following an application by a Financial Creditor. Audico Forge Kamgar Sangathana, representing the workers, filed a claim of Rs.8,19,47,918/- with the Interim Resolution Professional (IRP), which was admitted. Trinity India Forgetech Pvt. Ltd. submitted a Resolution Plan that was approved by the Committee of Creditors (CoC) with 92.87% vote share. The Appellant challenged the approval of the Resolution Plan, arguing that it did not adequately protect the rights of the workmen, particularly concerning continued employment and retiral benefits. The Appellant also contended that the Resolution Plan needed to fully address provident fund and gratuity payments. The

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## Issues and analysis

### Issue 1: Whether the Resolution Plan adequately protects the rights of the workmen, including continued …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) requires that a Resolution Plan must comply with

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**Reasoning:** The NCLAT found that the Resolution Plan provided for the payment of provident fund and

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**Interpretation:** The IBC mandates the protection of workmen's interests, but the extent of this

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**Application:** In this case, the NCLAT applied the ratio by examining the Resolution Plan and

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Audico Forge…
- **Respondents:** Adico Forge Pvt.…; CA Ramchandra…

## Timeline

- **2023-06-23 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) against Adico Forge Pvt. Ltd. commenced…
- **2023-12-06 — Claim Fi…**: The Appellant – Union filed their claim with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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