# In the matter of ICICI Bank Limited vs. BKM Industries Limited & Ors.

> NCLAT judgment dated 2023-11-06. Citation: TCN-2023-NCLAT-00095. This appeal was filed by ICICI Bank Ltd., a Financial Creditor of the Corporate Debtor, BKM…

- **Court:** NCLAT
- **Order date:** 6 Nov 2023
- **Citation:** TCN-2023-NCLAT-00095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/icici-bank-limited-vs-bkm-industries-limited-ors-9ddc351a

## Summary

### Background

This appeal was filed by ICICI Bank Ltd., a Financial Creditor of the Corporate Debtor, BKM Industries Limited, challenging an order dated 01.03.2023 in IA (IB) No.471/KB/2022. ICICI Bank sought direction to the Resolution Professional to consider the priority of distribution of plan realizations, taking into account the priority assigned to the dissenting Financial Creditor, who are also secured creditors. The Adjudicating Authority rejected the IA, leading to this appeal.

## Facts

ICICI Bank, a financial creditor, filed a claim of Rs. 15.52 crores against BKM Industries Limited, the corporate debtor, under CIRP. The claim was admitted, and ICICI Bank was given a seat in the Committee of Creditors (CoC). A resolution plan submitted by Uniglobal Papers Private Limited proposed distributing payments to secured creditors based on the proportion of their admitted claims. In the 14th CoC meeting, ICICI Bank argued that distribution should consider security interests. The Resolution Professional (RP) provided a distribution matrix. In the 15th CoC meeting, the RP proposed distributing amounts based on outstanding debt or security interest. ICICI Bank objected, but the CoC voted in favor of distribution based on outstanding debt/voting share. In the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application filed by the Appellant, …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) in approving a resolution plan

…

**Reasoning:** The tribunal relied on the Supreme Court's judgment in India Resurgence ARC Private Ltd.

…

**Interpretation:** Section 30(2)(b) of the IBC ensures that dissenting financial creditors receive

…

**Application:** In this case, the CoC approved a resolution plan that distributed payments to

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** ICICI Bank…
- **Respondents:** BKM INDUSTRIES…

## Timeline

- **2020-12-30 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor…
- **2022-05-02 — 14th CoC M…**: Members of the CoC discussed the distribution of proceeds under the received Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/icici-bank-limited-vs-bkm-industries-limited-ors-9ddc351a