# In the matter of B. R. Traders Vs Venkataramanarao Nagarajan & Ors. CA (AT) (Insolvency) No. 189-2019 and others

> NCLAT judgment dated 2019-11-13. Citation: TCN-2019-NCLAT-00138. The case involves multiple appeals against orders passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLAT-00138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/b-r-traders-vs-venkataramanarao-nagarajan-ors-ca-9a2e9600

## Summary

### Background

The case involves multiple appeals against orders passed by the Adjudicating Authority (National Company Law Tribunal) in relation to the Corporate Insolvency Resolution Process (CIRP) of 'M/s. Oceanic Tropical Fruits Pvt. Ltd.'. M/s. B.R. Traders and M/s. K.K. Foods, filed applications under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the Resolution Professional and the Committee of Creditors to reconsider their respective Resolution Plans. These applications were rejected by the Adjudicating Authority. Additionally, Pepsico India Holdings Private Limited filed a Miscellaneous Application under Section 60(5) seeking directions to the Resolution Professional to handover certain Plant & Machinery owned by it, which was also

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## Facts

M/s. Oceanic Tropical Fruits Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP). M/s. B.R. Traders and M/s. K.K. Foods, as Resolution Applicants, submitted Resolution Plans which were rejected by the Adjudicating Authority (NCLT) because the proposed amounts were less than the liquidation value. The Committee of Creditors (CoC) raised concerns about discrepancies in the Information Memorandum and the Resolution Professional's failure to properly assess the market value of the assets. The Adjudicating Authority then ordered the liquidation of Oceanic Tropical Fruits. Pepsico India Holdings Pvt. Ltd. sought to reclaim Plant & Machinery located at the Corporate Debtor's premises, arguing that it had terminated its agreement with the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the Resolution Plans submitted by …

**Ratio:** A Resolution Plan cannot be approved if it proposes an amount less than the liquidation

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**Reasoning:** The Committee of Creditors raised valid concerns about the discrepancies in the

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**Interpretation:** Section 30(2) of the I&B Code is interpreted strictly to ensure that the

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**Application:** Since the Resolution Plans submitted by M/s. B.R. Traders and M/s. K.K. Foods

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** M/s. B.R. T…
- **Respondents:** M/s Oceanic…; Venkataramanarao…

## Timeline

- **2017-09-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was triggered against the 'Corporate…
- **2017-11-28 — Termination Notice by…**: Pepsico India Holdings Pvt. Ltd. issued a termination notice to the 'Corporate Debtor' on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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