# Approval of Resolution Plan - Maruti Cotex Limited

> NCLT judgment dated 2020-07-02. Citation: TCN-2020-NCLT-01080. The case pertains to a Miscellaneous Application (MA) No. 422/2019 filed in C.P. (IB)…

- **Court:** NCLT
- **Order date:** 2 Jul 2020
- **Citation:** TCN-2020-NCLT-01080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-maruti-cotex-limited-0c8f121a

## Summary

### Background

The case pertains to a Miscellaneous Application (MA) No. 422/2019 filed in C.P. (IB) 241/MB/2018 before the National Company Law Tribunal (NCLT), Mumbai Bench. The application was filed by Ms. Sujata Chattopadhyay, the Resolution Professional (RP) of Maruti Cotex Ltd, seeking approval of the resolution plan submitted by Shree Siddhivinayak Cotspin Pvt Ltd consortium, as approved by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated against Maruti Cotex Ltd after a petition was admitted on 08.05.2019 under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The RP took steps such as issuing public announcements, appointing valuers, and inviting Expression of Interest (EoI) from prospective resolution applicants.

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## Facts

Maruti Cotex Ltd faced insolvency proceedings initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. An order was passed on 08.05.2019 admitting the petition against the Corporate Debtor. Ms. Sujata Chattopadhyay was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP took steps to initiate the Corporate Insolvency Resolution Process (CIRP), including issuing a public announcement on 11.05.2019, appointing registered valuers (B.K.C Advisors Pvt Ltd and GAA Advisory LLP) on 08.04.2019, and inviting Expression of Interest (EoI) with a deadline of 06.08.2019, which was later extended to 30.10.2019. The RP received claims of Rs. 574.98 crores from Financial Creditors and Rs. 5.03 crores from

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Shree Siddhivinayak Cotspin Pvt Ltd consortium meets the …

**Ratio:** Section 30(2) of the IBC specifies the conditions that a resolution plan must fulfill,

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**Reasoning:** The NCLT considered the provisions of Section 30(2) and determined that the resolution

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**Interpretation:** Section 30(2) sets out the minimum requirements for a resolution plan to be

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**Application:** The NCLT applied Section 30(2) to the specific details of the resolution plan,

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** JM Financial…
- **Respondents:** Maruti Cote…

## Timeline

- **2019-05-08 — Petition Ad…**: Petition against the Corporate Debtor, Maruti Cotex Ltd, was admitted under section 7 of…
- **2019-05-11 — Public Annou…**: Interim Resolution Professional issued a Public Announcement as required under Section 13…

## 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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