# In the matter of Ram Bhaj Jain Vs.
Tarun Batra, Resolution Professional
Vardhman Rice Mills Pvt. Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 1011 of 2022

> NCLAT judgment dated 2022-08-23. Citation: TCN-2022-NCLAT-00274. The appeal was filed against the order dated 20.06.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 23 Aug 2022
- **Citation:** TCN-2022-NCLAT-00274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ram-bhaj-jain-vs-tarun-batra-resolution-professional-vardhman-rice-mills-pvt-ltd-491018ce

## Summary

### Background

The appeal was filed against the order dated 20.06.2022 passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi, Court IV, which allowed I.A. No. 1816 of 2021 filed by the Resolution Professional under Section 33(1)(a) for issuing directions for liquidation. The Appellant, the Suspended Director of the Corporate Debtor, challenged the said order.

## Facts

The Corporate Debtor is an MSME. A Resolution Plan was submitted by the Appellant. The Resolution Plan was rejected by the single CoC member without giving any reasons. An OTS proposal of the Corporate Debtor is under consideration before the Bank, the sole CoC member. The Resolution Plan submitted by the Appellant was not approved with 100% dissent of the Financial Creditor in the 9th CoC meeting held on 02.04.2021. The Adjudicating Authority allowed the application for liquidation.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the application for liquidation of the …

**Ratio:** The CoC's commercial wisdom in refusing to approve a resolution plan is generally not

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**Reasoning:** The court found no error in the Adjudicating Authority's order allowing liquidation,

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**Interpretation:** This reinforces the principle that the CoC's decision-making in insolvency

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**Application:** The court applied this principle by upholding the liquidation order, as the CoC

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Ram Bhaj…
- **Respondents:** Vardhman Rice…; Tarun B…

## Timeline

- **2021-04-02 — 9th CoC M…**: The Resolution Plan submitted by the Appellant was not approved with 100% dissent of the…
- **2021-01-01 — I.A. No. 1816…**: I.A. No. 1816 of 2021 filed by the Resolution Professional under Section 33(1)(a) for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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