# In the matter of Union Bank of India (earlier known as Corporation
Bank)
Vs.
Mr. Rajender Kumar Jain, Resolution Professional of
M/s Kudos Chemie Ltd. & Ors. Comp. App. (AT) (Ins.) No. 665 of 2022

> NCLAT judgment dated 2022-07-20. Citation: TCN-2022-NCLAT-00338. Union Bank of India (formerly Corporation Bank) appealed against an order by the National…

- **Court:** NCLAT
- **Order date:** 20 Jul 2022
- **Citation:** TCN-2022-NCLAT-00338
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/union-bank-of-india-earlier-known-as-corporation-bank-vs-mr-rajender-kumar-jain-53e35036

## Summary

### Background

Union Bank of India (formerly Corporation Bank) appealed against an order by the National Company Law Tribunal (NCLT), Chandigarh, which rejected I.A No. 333 of 2021. The bank, a financial creditor of the Corporate Debtor, sought directions for the distribution of Rs. 17.26 Crores under the Resolution Plan, as if a CDR (Corporate Debt Restructuring) was never implemented, in accordance with Section 53 of the Code. The NCLT rejected this application, leading to the appeal before the NCLAT.

## Facts

Union Bank of India (formerly Corporation Bank), a financial creditor, filed an application (I.A No. 333 of 2021) before the National Company Law Tribunal (NCLT), Chandigarh, seeking a specific distribution of Rs. 17.26 Crores under the Resolution Plan. The bank wanted the distribution to be calculated as if a Corporate Debt Restructuring (CDR) had never been implemented, aligning with Section 53 of the Code. The NCLT rejected this application. The Committee of Creditors (CoC) had approved a resolution plan with a different distribution method (Option-1) supported by 97.61% of the voting share. Union Bank of India, holding only 2.31% voting share, preferred a different distribution method (Option-3). The Adjudicating Authority considered the CoC's decision and rejected

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Appellant's application for a specific …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in deciding the

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**Reasoning:** The Adjudicating Authority and the NCLAT relied on the Supreme Court's judgment in 'India

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**Interpretation:** The Supreme Court's judgment clarifies that the CoC's decision regarding the

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**Application:** In this case, the CoC, with a majority vote of 97.61%, approved Option-1 for

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Union Bank of…
- **Respondents:** M/s Kudos Chemie…; Rajender Kumar…

## Timeline

- **2022-03-17 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, passed an…
- **2021-01-21 — 21st CoC M…**: The members of the Committee of Creditors deliberated upon the distribution of Resolution…

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