# In the matter of Bank of Baroda On behalf of Committee of Creditors of Veda Biofuel Ltd. Vs. Mr. Sisir Kumar Appikatla Resolution Professional for Veda Biofuel Ltd. & Ors CA(AT)(Ins)No.579 of 2020

> NCLAT judgment dated 2020-07-20. Citation: TCN-2020-NCLAT-00194. The case involves an appeal against the rejection of a Resolution Plan submitted by Mr.…

- **Court:** NCLAT
- **Order date:** 20 Jul 2020
- **Citation:** TCN-2020-NCLAT-00194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bank-of-baroda-on-behalf-of-committee-of-creditors-of-veda-biofuel-ltd-vs-mr-sis-124c9f2b

## Summary

### Background

The case involves an appeal against the rejection of a Resolution Plan submitted by Mr. Madhusudhan Raju Chintalapati for Veda Biofuel Ltd. The Resolution Professional had filed I.A No. 64 of 2020 seeking approval of the Resolution Plan. The Adjudicating Authority (National Company Law Tribunal), Amaravati Bench, declined the prayers, primarily because the Resolution Applicant was not disqualified under Section 29 of the 'I&B Code', but the Adjudicating Authority proceeded to pass the order of liquidation under Section 33(1) (b) of the 'I&B Code'. The Committee of Creditors (CoC) had approved the Resolution Plan with a 96.39% majority. The Adjudicating Authority admitted the application filed by ‘M/s. Priya Trading Company' for triggering Corporate Insolvency

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Veda Biofuel Ltd. based on an application filed by M/s. Priya Trading Company. The Adjudicating Authority admitted the application. Mr. Gonugunta Murali was initially appointed as Interim Resolution Professional and later confirmed as Resolution Professional, but was subsequently replaced by Mr. Sisir Kumar Applikatla. Two prospective Resolution Applicants, M/s. Orion Ferro Alloys Private Limited and Mr. Madhusudhan Raju Chintalapati, submitted Resolution Plans. Mr. Madhusudhan entered into an agreement with P. Vijay Kumar, the former Managing Director of the Corporate Debtor, to invest a substantial amount. The Committee of Creditors (CoC) approved a Restructuring Plan submitted by Mr.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the Resolution Plan approved by the …

**Ratio:** The Adjudicating Authority has the power to ensure that the Resolution Plan complies with

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**Reasoning:** The Adjudicating Authority found that the Restructuring Plan was essentially a means for

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**Interpretation:** Section 30(2) of the I&B Code sets out the requirements that a resolution

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**Application:** In this case, the Adjudicating Authority applied the provisions of Section

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Bank of B…
- **Respondents:** Veda Biofu…; Sisir Kumar…

## Timeline

- **2018-01-01 — Initiation…**: Corporate Insolvency Resolution Process initiated against Veda Biofuel Ltd. based on…
- **2019-02-12 — Admission of Ap…**: The Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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