# 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-00272. 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-00272
- **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-935a83ed

## 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 order.

## Facts

The Adjudicating Authority (National Company Law Tribunal) New Delhi, Court IV, passed an order on 20.06.2022 allowing 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 this order. The Corporate Debtor is an MSME. The Appellant submitted a Resolution Plan, which 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 9th CoC meeting held on 02.04.2021 showed that the Resolution Plan submitted by the Appellant was not approved with 100% dissent of the Financial Creditor.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in …

**Ratio:** The CoC's commercial wisdom in refusing to approve the plan submitted by the Appellant is

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**Reasoning:** The court found no error in the order of the Adjudicating Authority allowing application

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**Interpretation:** The court interpreted the law to mean that the commercial decisions of the CoC

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**Application:** The court applied the ratio to the facts of the case, finding that the CoC's

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## Parties

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

## Timeline

- **2021-04-02 — 9th CoC M…**: The 9th CoC meeting was held, where the Resolution Plan submitted by the Appellant was…
- **2022-06-20 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) New Delhi, Court IV, passed an…

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