# In the matter of Consolidated Engineering Company Vs. Subodh Kumar Agarwal & Ors. CA(AT)(Ins)No. 1112-2019

> NCLAT judgment dated 2019-10-23. Citation: TCN-2019-NCLAT-00195. The case involves an appeal against the Adjudicating Authority's decision regarding a…

- **Court:** NCLAT
- **Order date:** 23 Oct 2019
- **Citation:** TCN-2019-NCLAT-00195
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/consolidated-engineering-company-vs-subodh-kumar-agarwal-ors-ca-6045858a

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's decision regarding a Resolution Plan. The Appellant contends that the approved Resolution Plan was not properly reviewed by the Operational Creditors, nor were its details discussed by the Committee of Creditors. The Appellant also alleges discrimination between Financial Creditors and Operational Creditors, as a 'NIL' amount was allocated to most Operational Creditors except one.

## Facts

The Consolidated Engineering Company filed an appeal against the Adjudicating Authority's decision regarding a Resolution Plan. The appellant argued that the approved Resolution Plan was not reviewed by the Operational Creditors, nor were its details discussed by the Committee of Creditors. The appellant also claimed that a 'NIL' amount was allocated to most Operational Creditors, except one, leading to discrimination between Financial and Operational Creditors. The Adjudicating Authority had not yet approved the Resolution Plan at the time of the appeal. The appellant's counsel submitted that the approved Resolution Plan was neither gone through by any of the ‘Operational Creditors' nor details thereof discussed by the ‘Committee of Creditors' while approving the

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## Issues and analysis

### Issue 1: Whether the approved Resolution Plan was properly reviewed by the Operational Creditors and …

**Ratio:** The Resolution Plan approval process must ensure adequate consideration of the interests

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**Reasoning:** The court emphasizes the importance of a fair and transparent process in approving

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**Interpretation:** This issue concerns the procedural fairness and compliance with the Insolvency

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**Application:** The court directs the Adjudicating Authority to verify whether the Operational

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…; +1 more
- **Appellants:** Consolidated…
- **Respondents:** Subodh Kumar…
- **Advocates:** Abhijeet…; Bhavya…; +1 more

## Timeline

- **2019-10-23 — Order Da…**: Learned counsel for the Appellant submits that the approved ‘Resolution Plan' was neither…

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