# Approval of Resolution Plan - Divya jyoti Sponge Iron Private Limited

> NCLT judgment dated 2018-03-13. Citation: TCN-2018-NCLT-01707. The case involves an application filed by Punjab National Bank under Section 7 of the…

- **Court:** NCLT
- **Order date:** 13 Mar 2018
- **Citation:** TCN-2018-NCLT-01707
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-divya-jyoti-sponge-iron-private-limited-079aa0f8

## Summary

### Background

The case involves an application filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Divyajyoti Sponge Iron Ltd. The application was admitted on August 23, 2017, and Mr. Arun Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The 180-day period for submitting a resolution plan expired on February 19, 2018, and the RP submitted the plan in time. The Committee of Creditors (CoC) approved a resolution plan submitted by CP Ispat Private Limited with 100% voting share. Other resolution applicants, including Omkara Infraprojects Private Limited and Prakash Jain of Simplex Credits and Industries Ltd,

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## Facts

Punjab National Bank initiated CIRP against Divyajyoti Sponge Iron Ltd. under Section 7 of the IBC. The application was admitted on August 23, 2017. Arun Kumar Gupta was appointed as IRP and later as RP. The 180-day period for submitting a resolution plan expired on February 19, 2018. The RP submitted the plan in time. The CoC approved a resolution plan submitted by CP Ispat Private Limited with 100% voting share on February 14, 2018. Other resolution applicants, including Omkara Infraprojects Private Limited and Prakash Jain of Simplex Credits and Industries Ltd, raised objections. Omkara Infraprojects alleged irregularities by the RP, including violating confidentiality and disclosing bid amounts. Prakash Jain objected to the rejection of his expression of interest,

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## Issues and analysis

### Issue 1: Whether the Resolution Professional violated the confidentiality of the decisions of the CoC …

**Ratio:** The principle of confidentiality in the CIRP process is crucial to ensure fair

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**Reasoning:** The adjudicating authority considered the allegations but found no conclusive evidence

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**Interpretation:** The interpretation of Section 30(2) emphasizes the importance of maintaining

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**Application:** In this case, the allegation was not substantiated with sufficient evidence,

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## Parties

- **Judges:** Jinan…
- **Appellants:** Punjab National…
- **Respondents:** Divyajyoti Sponge…; Divya Jyoti…
- **Advocates:** Prerna Cho…; Ranjit Cho…; +10 more

## Timeline

- **2017-08-23 — Application A…**: Application filed by Punjab National…
- **2017-10-24 — RP Appoi…**: Arun Kumar Gupta appointed…

## 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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