# Approval of Resolution Plan - Badami Sugar Ltd.

> NCLT judgment dated 2020-07-08. Citation: TCN-2020-NCLT-01057. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 8 Jul 2020
- **Citation:** TCN-2020-NCLT-01057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-badami-sugar-ltd-478804e0

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Badami Sugars Limited based on an application filed by Sri Arumuga Sugars Limited, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted, and an Interim Resolution Professional (IRP) was appointed. Subsequently, a Committee of Creditors (CoC) was formed, and a Resolution Professional (RP) was appointed. The CoC considered multiple resolution plans and ultimately approved the plan submitted by Shri Sai Priya Sugars Limited. The Resolution Professional then filed an application seeking approval of the resolution plan by the Adjudicating Authority.

## Facts

Sri Arumuga Sugars Limited initiated CIRP against Badami Sugars Limited under Section 7 of IBC, 2016. The Adjudicating Authority admitted the application and appointed an IRP. A CoC was formed, and Mr. Madhugiri Venkatarayappa Sudarshan was appointed as the RP. The RP invited resolution plans, and two plans were received from Mr. T. Rajkumar and M/s. Shri Sai Priya Sugars Ltd. The CoC approved the plan submitted by M/s. Shri Sai Priya Sugars Ltd. with a revised upfront cash recovery of Rs. 17.00 crore. The resolution plan proposed to pay CIRP costs in full, provide Rs. 16.50 crore to secured financial creditors, and pay NIL to unsecured financial creditors and operational creditors. The resolution applicant, Shri Sai Priya Sugars Ltd., is promoted by Shri Murugesh R

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s. Shri Sai Priya Sugars Limited satisfies the …

**Ratio:** Section 31(1) of the IBC stipulates that the Adjudicating Authority shall approve a

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan and found that it complied with

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**Interpretation:** Section 31(1) mandates that the Adjudicating Authority must ensure that the

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan

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## Parties

- **Judges:** Ashutosh C…; Rajeswara Rao…
- **Respondents:** Badami Sugars…; M/s. Badami…
- **Advocates:** Anup Seetha…

## Timeline

- **2019-09-27 — Date of Initiation of…**: CIRP initiated against…
- **2019-09-27 — Date of Appointment of…**: Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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