# In the matter of Securities and Exchange Board of India Vs. Assam Company India Ltd. & Ors. CA(AT)(Insolvency) No.  629-2018

> NCLAT judgment dated 2019-08-29. Citation: TCN-2019-NCLAT-00329. The case involves an appeal against an order dated 20th September 2018, passed by the…

- **Court:** NCLAT
- **Order date:** 29 Aug 2019
- **Citation:** TCN-2019-NCLAT-00329
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/securities-and-exchange-board-of-india-vs-assam-company-india-ltd-ors-ca-9740e098

## Summary

### Background

The case involves an appeal against an order dated 20th September 2018, passed by the National Company Law Tribunal (NCLT), Guwahati Bench, approving a Resolution Plan for Assam Company India Limited (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 26th October 2017. The Securities and Exchange Board of India (SEBI) challenged the approval of the Resolution Plan, arguing that it contravenes the SEBI Act and regulations, particularly concerning the delisting of equity shares.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Assam Company India Limited (ACIL) on October 26, 2017. SEBI, acting as a statutory regulator, initiated investigations against ACIL for alleged violations of the Companies Act, LODR Regulations, and other laws, based on observations in a Secretarial Audit Report regarding misuse of funds. SEBI issued directions to stock exchanges, leading ACIL to appeal to the Securities Appellate Tribunal (SAT). The SAT stayed some of SEBI's directions and allowed ACIL to make representations to SEBI. SEBI issued an interim order on December 8, 2017, imposing certain restrictions on ACIL. ACIL challenged SEBI's actions before the Gauhati High Court, which partially set aside SEBI's letter. The NCLT, Guwahati

…

## Issues and analysis

### Issue 1: Whether the approved Resolution Plan, specifically the clause regarding the delisting of equity …

**Ratio:** The principle is that a Resolution Plan, once approved by the Adjudicating Authority

…

**Reasoning:** The court reasoned that the delisting of equity shares, as part of the Resolution Plan,

…

**Interpretation:** This issue involves the interpretation of the interplay between the IBC and the

…

**Application:** In this case, the court applied the principle by stating that the delisting of

…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Securities and…
- **Respondents:** Assam Company…; Assam Company…

## Timeline

- **2017-10-26 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2017-06-09 — MCA Lett…**: Ministry of Corporate Affairs (MCA)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

---

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/securities-and-exchange-board-of-india-vs-assam-company-india-ltd-ors-ca-9740e098