# in the matter of Applied Electro Magnetics Pvt. Ltd. CA 371-C-II-2018 In (IIB)-334(ND)-2017

> NCLT judgment dated 2019-04-02. Citation: TCN-2019-NCLT-04189. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Applied Electro…

- **Court:** NCLT
- **Order date:** 2 Apr 2019
- **Citation:** TCN-2019-NCLT-04189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/applied-electro-magnetics-pvt-ltd-ca-371-c-ii-2018-in-iib-334nd-2017-6c8dcbc0

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Applied Electro Magnetics Pvt. Ltd. (AEM). An application was filed under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code 2016. The CIRP was initiated following a petition filed by an Operational Creditor, Mr. Nitin Gupta, which was admitted on 26.10.2017. Naveen Kumar Jain was appointed as the Interim Resolution Professional (IRP) and later Vinay Talwar was appointed as the Resolution Professional (RP). The Committee of Creditors (COC), with Bank of India holding 90% of the claim, approved the resolution plan submitted by SM Milkose Limited.

## Facts

Nitin Gupta, an Operational Creditor, filed a petition that led to the initiation of Corporate Insolvency Resolution Process (CIRP) for Applied Electro Magnetics Pvt. Ltd. (AEM) on 2017-10-26. Naveen Kumar Jain was appointed as the Interim Resolution Professional (IRP), followed by Vinay Talwar as the Resolution Professional (RP). The Committee of Creditors (COC) was formed, with Bank of India holding 90% of the claim. SM Milkose Limited submitted a resolution plan, which was approved by the COC. The resolution plan included infusion of working capital, settlement of dues, and treatment of different classes of creditors. The liabilities of the Corporate Debtor were collated and verified by the RP. The fair value and liquidation value of the assets were assessed at Rs.

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by SM Milkose Limited meets the requirements of Section 31 of …

**Ratio:** Section 31 of the Insolvency and Bankruptcy Code stipulates the requirements for the

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**Reasoning:** The Bench was satisfied that the resolution plan, as unanimously approved by the

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**Interpretation:** Section 31 requires the Adjudicating Authority to be satisfied that the

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**Application:** The Adjudicating Authority, after reviewing the plan and the COC's approval,

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** Nitin G…
- **Respondents:** Applied Electro…

## Timeline

- **2017-10-26 — Initiation…**: Petition filed by Operational Creditor, Mr. Nitin Gupta, was admitted, initiating the…
- **2017-11-18 — Appointment…**: Mr. Naveen Kumar Jain was appointed as the Interim Resolution Professional and took…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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