# Approval of Resolution Plan -  ARC Lamicraft Private Limited

> NCLT judgment dated 5 Apr 2024. Citation: TCN-2024-NCLT-01821. The case involves three interlocutory applications (IAs) related to the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01821
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-arc-lamicraft-private-limited-90e99ef0

## Summary

### Background

The case involves three interlocutory applications (IAs) related to the Corporate Insolvency Resolution Process (CIRP) of ARC Lamicraft Private Limited. IA/4(AHM)2024 was filed by Chirag R. Shah, the Resolution Professional (RP), seeking approval of the Resolution Plan submitted by Sun Chemicals under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (IBC). This application also relies on Regulation 39(4) of the IBBI (CIRP) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The Resolution Plan proposes a total outlay of Rs. 380.33 Lakhs, including Rs. 15 Lakhs for CIRP costs, Rs. 363 Lakhs for Secured Creditors, Rs. 1.83 Lakh for Operational Creditors (excluding Secured Creditors), and Rs. 0.50 Lakh for Contingent Liabilities.

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## Facts

The Corporate Debtor, ARC Lamicraft Private Limited, was admitted into the Corporate Insolvency Resolution Process (CIRP) via an order from the Tribunal on June 3, 2020, following an application by the operational creditor, MP Resources, under Section 9 of the IBC, 2016. Mr. Pinakin Shah was initially appointed as the Interim Resolution Professional (IRP).

Following a public announcement on June 5, 2020, claims were invited from creditors. Subsequently, the Committee of Creditors (CoC) was constituted under Section 21 of the IBC, 2016, with Union Bank of India being the sole financial creditor holding 100% voting shares. The first CoC meeting on July 1, 2020, resolved to continue the IRP as the Resolution Professional (RP).

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Sun Chemicals is liable to be rejected on the grounds that…

**Ratio:** A Resolution Applicant for an MSME Corporate Debtor is exempt from the ineligibility…

**Reasoning:** The Tribunal considered the arguments that Sun Chemicals was a related party because Mr.…

**Interpretation:** The Tribunal interpreted Section 240A of the IBC as providing an exemption for…

**Application:** In this case, the Corporate Debtor was classified as an MSME at the time the…

## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Advocates:** Pratik Th…; Ishan P.…; +1 more

## Timeline

- **June 3, 2020 — CIRP Init…**: Corporate Debtor admitted to CIRP by Tribunal order in CP(IB) No. 186 of 2020, filed by…
- **June 5, 2020 — Public Annou…**: IRP made a public announcement and…

## 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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