# In the matter of Next Orbit Ventures Fund Vs. Print House (India) Pvt. Ltd. and Ors. CA (AT) (Ins) No.  417 & 744  of 2020

> NCLAT judgment dated 2021-04-13. Citation: TCN-2021-NCLAT-00290. The case involves two Company Appeals (AT) (Insolvency) No. 417 of 2020 and No. 744 of 2020,…

- **Court:** NCLAT
- **Order date:** 13 Apr 2021
- **Citation:** TCN-2021-NCLAT-00290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/next-orbit-ventures-fund-vs-print-house-0dcdbd8c

## Summary

### Background

The case involves two Company Appeals (AT) (Insolvency) No. 417 of 2020 and No. 744 of 2020, both challenging the approval of a Resolution Plan for Print House (India) Pvt. Ltd. The appeals arise from orders passed by the National Company Law Tribunal (NCLT), Mumbai Bench. Next Orbit Ventures Fund, the Appellant in Appeal No. 417, opposed the Resolution Plan submitted by Sify Technologies Limited. MA 2972 of 2019 was filed by the Resolution Professional of Print House (India) Pvt. Ltd. seeking approval of the Resolution Plan. MA 3137/2019 was filed by the Suspended Directors and Promotors of the Corporate Debtor seeking impleadment in MA 2972/2019. The Company Petition was filed by Print House (India) Pvt. Ltd. under Section 10 of the Code.

## Facts

Next Orbit Ventures Fund filed an appeal against the approval of a Resolution Plan submitted by Sify Technologies Limited for Print House (India) Pvt. Ltd., the Corporate Debtor. The Resolution Plan proposed a shift from the Corporate Debtor's existing printing business to establishing data centers. The Appellant argued that this change contravened the objectives of the IBC. The Resolution Professional and the CoC supported the Resolution Plan, citing the obsolescence of the printing business and the potential for the data center business to maximize asset value and promote entrepreneurship. The CoC approved the Resolution Plan with a majority of 70.05% and a weighted score of 93.85. The Appellant's Resolution Plan scored only 22.44 points. The Corporate Debtor's

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving a Resolution Plan that changed the nature of …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount, and the scope of

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**Reasoning:** The NCLAT relied on precedents from the Supreme Court, including K. Sashidhar v Overseas

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**Interpretation:** The IBC allows for changes in the nature of a Corporate Debtor's business as

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**Application:** In this case, the NCLAT found that the Resolution Plan proposed by Sify

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## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +2 more
- **Appellants:** NEXT ORBIT…
- **Respondents:** Print House…

## Timeline

- **2020-01-20 — Impugned Ord…**: Order dated 20th January, 2020 passed by National Company Law Tribunal, Mumbai Bench, MA…
- **2018-10-09 — CIRP Init…**: Corporate Insolvency Resolution Proceedings (CIRP) has been initiated vide an Order dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(3) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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