# In the matter of A.P. Enterprises Private Limited CA No. 610/2019 & IA No. 18/2020 in CP (IB) No.119-Chd-Chd-2018

> NCLT judgment dated 2020-03-18. Citation: TCN-2020-NCLT-01470. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against A.P.…

- **Court:** NCLT
- **Order date:** 18 Mar 2020
- **Citation:** TCN-2020-NCLT-01470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-enterprises-private-limited-ca-no-6102019-ia-no-182020-in-cp-ib-no119-chd-chd-a31d8446

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against A.P. Enterprises Private Limited, the Corporate Debtor, following an application filed by Bhagwati Kripa Paper Mills Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 13.11.2018. Mr. Somnath Gupta was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Rajiv Khurana. The Committee of Creditors (CoC) was formed, and claims were invited from creditors. The Corporate Debtor was identified as a 'small enterprise' under the MSME Act, 2006. The resolution plan submitted by Mr. Narinder Garg, Mrs. Manju Garg, and Mr. Shiv Garg was approved by the CoC with 95.30% voting share.

## Facts

Bhagwati Kripa Paper Mills Pvt. Ltd., an Operational Creditor, initiated CIRP against A.P. Enterprises Private Limited (Corporate Debtor) under Section 9 of the IBC. The CIRP was admitted on 13.11.2018. Somnath Gupta was appointed as IRP, later replaced by Rajiv Khurana. Public announcement was made to invite claims from creditors. The CoC was formed, including financial creditors like Kotak Mahindra Bank Ltd., ICICI Bank, and RBL Bank Ltd., and operational creditors like Sylvan Greens Pvt. Ltd., Bhagwati Kripa Paper Mills Pvt. Ltd, and Himanshu Paper Limited. The Corporate Debtor was classified as a 'small enterprise' under the MSME Act. A resolution plan was submitted by Narinder Garg, Manju Garg, and Shiv Garg, which was approved by the CoC with 95.30% voting share

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mr. Narinder Garg, Mrs. Manju Garg, and Mr. Shiv Garg …

**Ratio:** Section 30(2) of the IBC mandates that a resolution plan must provide for the payment of

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**Reasoning:** The Adjudicating Authority examined the resolution plan to ensure it complied with the

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**Interpretation:** Section 30(2) sets out the minimum requirements for a resolution plan to be

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**Application:** The resolution plan was found to comply with Section 30(2) as it provided for

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Bhagwati Kripa…
- **Respondents:** A.P. Enterprises…

## Timeline

- **2018-11-13 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP) was admitted against A.P. Enterprises…
- **2018-11-13 — Appointment…**: Mr. Somnath Gupta was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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