# Approval of Resolution Plan - Datre Corporation Ltd.

> NCLT judgment dated 2018-06-22. Citation: TCN-2018-NCLT-01232. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Jun 2018
- **Citation:** TCN-2018-NCLT-01232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-datre-corporation-ltd-5be80859

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) by Stressed Assets Stabilisation Fund (SASF), a Government Company, seeking to recall the order admitting Corporate Insolvency Resolution Process (CIRP) against Datre Corporation Limited dated 20.09.2017. The CIRP was initiated based on a petition filed by Vistar Financiers Pvt. Ltd. under Section 7 of IBC due to the corporate debtor's failure to redeem debentures worth Rs. 22 crores. The applicant, SASF, argued that the order to start CIRP was sought by the financial creditor and corporate debtor in collusion with each other, and that there was no default because the debentures were yet to mature for liquidation when the petition was filed.

## Facts

Vistar Financiers Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Datre Corporation Limited. The basis for the petition was the failure of Datre Corporation Limited to redeem debentures worth Rs. 22 crores. The debentures were allotted to Vistar Financiers Pvt. Ltd. and could not be redeemed on the date of maturity, which was 16.11.2016. The petition under Section 7 of IBC was filed on 30.08.2017. The Adjudicating Authority admitted the petition on 20.09.2017 and appointed Mr. Rakesh Kumar Agarwal as the Interim Resolution Professional (IRP). The IRP took charge of the affairs of the Corporate Debtor and made a public announcement of the insolvency resolution. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to recall or review its own order admitting …

**Ratio:** The Adjudicating Authority does not have the power to recall or review its own order

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**Reasoning:** The Adjudicating Authority stated that it does not find any provision in IBC that allows

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**Interpretation:** The interpretation of the IBC suggests that the Adjudicating Authority's power

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**Application:** In this case, the Adjudicating Authority held that it did not have the

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Stressed Assets…
- **Respondents:** Datre Corporation…; Vistar Financiers…

## Timeline

- **2016-11-16 — Date of Ma…**: Debentures worth Rs. 22 crores allotted to Vistar Financiers Pvt. Ltd. could not be…
- **2017-08-30 — Petition…**: Vistar Financiers Pvt. Ltd. filed a petition under Section 7 of IBC to start CIRP against…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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