# In the matter of Kundan Care Products Ltd. Vs. Mr. Surya Kanta Satapathy & Ors. CA(AT)(Ins) No. 11,75 of 2020

> NCLAT judgment dated 2020-01-30. Citation: TCN-2020-NCLAT-00477. The case involves two appeals challenging the approval of a Resolution Plan for ‘M/s. Alex…

- **Court:** NCLAT
- **Order date:** 30 Jan 2020
- **Citation:** TCN-2020-NCLAT-00477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kundan-care-products-ltd-vs-mr-surya-kanta-satapathy-ors-ca-127ef206

## Summary

### Background

The case involves two appeals challenging the approval of a Resolution Plan for ‘M/s. Alex Green Energy Pvt. Ltd.'- (‘Corporate Debtor') by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench. The Resolution Plan submitted by ‘Fortis Chemicals Pvt. Ltd.'- (3rd Respondent) was approved. The Appellant, ‘Kundan Care Products Ltd.', another ‘Resolution Applicant', challenged the order in both appeals, arguing that the evaluation process was not transparent and their revised proposal was not adequately considered.

## Facts

The 'Corporate Insolvency Resolution Process' was initiated for ‘M/s. Alex Green Energy Pvt. Ltd.'- (‘Corporate Debtor'). Kundan Care Products Ltd. submitted a 'Resolution Plan' which was ranked 6th by the 'Resolution Professional'. The 'Committee of Creditors' decided to negotiate only with the top three 'Resolution Applicants'. Kundan Care Products Ltd. sought to revise its offer, proposing a higher amount (Rs.11.50 Crores) than the amount proposed by the 3rd Respondent (Rs.11.07 Crores), Fortis Chemicals Pvt. Ltd. The Adjudicating Authority approved the 'Resolution Plan' of Fortis Chemicals Pvt. Ltd. Kundan Care Products Ltd. challenged this approval, arguing that the evaluation process was non-transparent and their revised offer was not considered. The 'Expression

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in approving the Resolution Plan of the 3rd …

**Ratio:** The 'Resolution Plan' approved by the Adjudicating Authority can be challenged only on

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**Reasoning:** The court reasoned that no grounds were established under Section 61(3) to justify

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**Interpretation:** Section 61(3) limits the grounds for challenging an approved resolution plan to

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**Application:** Since the Appellant did not demonstrate any grounds under Section 61(3), the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Kundan Care…
- **Respondents:** M/s. Alex Green…; Surya Kanta…

## Timeline

- **2019-10-29 — Submission of…**: Kundan Care Products Ltd. submitted its 'Resolution Plan' before the ‘Committee of…
- **2019-11-01 — Ranking Notif…**: The Appellant received an e-mail stating…

## 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)

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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/kundan-care-products-ltd-vs-mr-surya-kanta-satapathy-ors-ca-127ef206