# Approval of Resolution Plan - Rishi Ganga Power Corporation Ltd.

> NCLT judgment dated 2018-11-13. Citation: TCN-2018-NCLT-00354. The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s Rishi Ganga Power…

- **Court:** NCLT
- **Order date:** 13 Nov 2018
- **Citation:** TCN-2018-NCLT-00354
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-rishi-ganga-power-corporation-ltd-d8ae9e8f

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s Rishi Ganga Power Corporation Ltd. initiated by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 25.01.2018, a moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. CA No.477/2018 was filed by Shri Rajit Mehra, ex-Director of the corporate debtor, seeking impleadment as a respondent/objector. CA No.339/2018 was filed by the Resolution Professional (RP) seeking sanction of the resolution plan approved by the Committee of Creditors (CoC). The CoC initially comprised Punjab National Bank and Oriental Bank of Commerce, later including Kotak Mahindra Bank. The ex-Director raised objections to the resolution

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## Facts

Punjab National Bank initiated CIRP against M/s Rishi Ganga Power Corporation Ltd. The petition was admitted on 25.01.2018. An ex-director, Rajit Mehra, filed CA No.477/2018 seeking to be impleaded as a respondent/objector. The Resolution Professional filed CA No.339/2018 seeking approval of the resolution plan. The CoC initially consisted of Punjab National Bank and Oriental Bank of Commerce, later including Kotak Mahindra Bank. The IRP appointed two valuers and determined the liquidation value to be ₹15.39 crores. The CoC approved a resolution plan by M/s Kundan Care Products Ltd. after adopting the Swiss Challenge Method. The ex-director raised objections, alleging malafide intention and conflict of interest. The resolution plan provided for ₹50,00,000/- to

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by M/s Kundan Care Products Ltd. meets the requirements of …

**Ratio:** Section 31(1) of the Code requires the Adjudicating Authority to be satisfied that the

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**Reasoning:** The court examined the resolution plan and found that it complied with the provisions of

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**Interpretation:** Section 31(1) mandates that a resolution plan must adhere to the conditions

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**Application:** The court applied Section 31(1) by verifying that the resolution plan provided

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Punjab National…
- **Respondents:** M/s Rishi Ganga…

## Timeline

- **2017-01-01 — CP (IB) No.102/Chd/Pb/20…**: CP (IB) No.102/Chd/Pb/20…
- **2018-01-25 — Petition Admission and…**: The petition filed by Punjab National Bank was admitted, moratorium was declared, and an…

## 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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