# In the matter of Lalit Mishra & Ors. Vs. Sharon Bio Medicine Ltd. & Ors. CA (AT) No. 164-2018

> NCLAT judgment dated 2018-12-19. Citation: TCN-2018-NCLAT-00008. The appeal was filed by Lalit Mishra & Ors., promoters of Sharon Bio Medicine Ltd. (Corporate…

- **Court:** NCLAT
- **Order date:** 19 Dec 2018
- **Citation:** TCN-2018-NCLAT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/lalit-mishra-ors-vs-sharon-bio-medicine-ltd-ors-ca-6aa2a117

## Summary

### Background

The appeal was filed by Lalit Mishra & Ors., promoters of Sharon Bio Medicine Ltd. (Corporate Debtor), challenging the order dated 28th February, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, approving the Resolution Plan submitted by the 3rd Respondent (Successful Resolution Applicant). The Appellants challenged the approval of the Resolution Plan on two grounds: (i) as promoters and shareholders, no amount was provided to them under the Resolution Plan; and (ii) some of the Appellants, promoters, were also personal guarantors who have been discriminated against.

## Facts

Lalit Mishra & Ors., promoters of Sharon Bio Medicine Ltd. (Corporate Debtor), filed an appeal against the order dated 28th February, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai. The Adjudicating Authority approved a Resolution Plan submitted by the 3rd Respondent (Successful Resolution Applicant). The Appellants challenged the approval of the Resolution Plan on the grounds that as promoters and shareholders, they received no amount under the plan, and that some of them, as personal guarantors, were discriminated against. The Appellants argued that the payment terms in the Resolution Plan contravened applicable law, and that the Resolution Applicant arbitrarily reduced or wrote off substantial liabilities of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's approval of the Resolution Plan, which provided no amount to …

**Ratio:** The object of the I&B Code is to maximize the value of the Corporate Debtor's assets,

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**Reasoning:** The court reasoned that the promoters, being related parties of the Corporate Debtor,

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**Interpretation:** The I&B Code prioritizes the interests of creditors and the maximization of

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**Application:** The court applied the ratio to the facts by stating that the Appellants cannot

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Lalit M…
- **Respondents:** Sharon Bio…

## Timeline

- **2018-02-28 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, passed…
- **2018-12-19 — NCLAT Or…**: The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal filed by Lalit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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