# Approval of Resolution Plan - Bhadravati Balaji Oil Palms Limited

> NCLT judgment dated 2018-09-28. Citation: TCN-2018-NCLT-00697. The case involves a company petition (C.P.No.110/2016) initially filed by M/s. Ruchi Soya…

- **Court:** NCLT
- **Order date:** 28 Sept 2018
- **Citation:** TCN-2018-NCLT-00697
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-bhadravati-balaji-oil-palms-limited-0e0a24f8

## Summary

### Background

The case involves a company petition (C.P.No.110/2016) initially filed by M/s. Ruchi Soya Industries Limited (Petitioner/Operational Creditor) before the Hon'ble High Court of Karnataka under Section 433(e) of the Companies Act, 1956, seeking to wind-up M/s. Bhadravati Balaji Oil Palms Limited (Respondent/Corporate Debtor Company). Subsequently, the case was transferred to the National Company Law Tribunal (NCLT), Bengaluru Bench, and renumbered as T.P.No.57/2017. The petitioner then filed an amended petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The corporate debtor had defaulted on a payment of Rs 1,40,38,462/-.

## Facts

M/s. Ruchi Soya Industries Limited, an operational creditor, initiated CIRP against M/s. Bhadravati Balaji Oil Palms Limited due to a default of Rs 1,40,38,462. The initial petition was filed in the High Court of Karnataka under the Companies Act, 1956, and later transferred to NCLT, Bengaluru. The NCLT admitted the petition and appointed an Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed with Ruchi Soya Industries Limited as the sole member, due to KSIIDC being a related party. The RP sought expressions of interest and received a resolution plan from Punjab Woolcombers Limited jointly with LVS Finance Limited. The CoC sought clarifications and revisions to the plan. The RP filed an

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Punjab Woolcombers Limited jointly with LVS Finance …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code (IBC), 2016, empowers the

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**Reasoning:** The Adjudicating Authority was satisfied that the Resolution Plan was approved by the

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**Interpretation:** Section 31(1) of the IBC provides the legal basis for the Adjudicating

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**Application:** The Adjudicating Authority exercised its powers under Section 31(1) of the IBC,

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Ruchi Soya…
- **Respondents:** Bhadravati Balaji…; Bhadravathi…

## Timeline

- **2016-01-01 — Initial F…**: Company petition (C.P.No.110/2016) filed by M/s. Ruchi Soya Industries Limited before the…
- **2016-12-07 — Transfer t…**: Case transferred to the National Company Law Tribunal (NCLT), Bengaluru Bench, as per…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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