# Approval of Resolution Plan - Sree Metaliks Limited

> NCLT judgment dated 2017-11-07. Citation: TCN-2017-NCLT-00239. The case pertains to the insolvency resolution of Sree Metaliks Limited under the Insolvency…

- **Court:** NCLT
- **Order date:** 7 Nov 2017
- **Citation:** TCN-2017-NCLT-00239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-sree-metaliks-limited-5678413d

## Summary

### Background

The case pertains to the insolvency resolution of Sree Metaliks Limited under the Insolvency and Bankruptcy Code, 2016. An insolvency petition was filed, and a Resolution Professional, Shri Kuldeep Verma, was appointed. The Resolution Professional submitted a Resolution Plan under section 30(6) of the IBC, which was approved by the Committee of Creditors (CoC) with a majority vote of 78.53%. SREI Equipment Finance Limited, a financial creditor, raised objections to the Resolution Plan, primarily concerning the eligibility of the Corporate Debtor to submit a resolution plan, the classification of secured creditors, and the overall fairness and compliance of the plan with the IBC. The CoC considered the objections and the clarifications provided by the Resolution

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## Facts

Sree Metaliks Limited (SML) underwent Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). SREI Equipment Finance Limited, a financial creditor, filed objections to the resolution plan submitted by Mr. Mahesh Kumar Agarwal, a promoter of SML. The Committee of Creditors (CoC) approved the resolution plan with 78.53% voting share. SREI, being the second largest voting shareholder, opposed the plan. SREI contended that the corporate debtor cannot be the resolution applicant, the plan classifies secured creditors unfairly, and it lacks transparency. The resolution plan proposed a 50% haircut for Class B creditors, including SREI, while offering a 25% haircut for Class A creditors. SML entered into a Memorandum of

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## Issues and analysis

### Issue 1: Whether a Corporate Debtor can be the resolution applicant under the IBC for its insolvency …

**Ratio:** Section 30 of the I.B. Code, 2016, allows any person to submit a Resolution Plan, even if

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**Reasoning:** The court reasoned that the statutory provisions of section 30 of the I.B. Code do not

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**Interpretation:** This interprets Section 30 of the IBC as not explicitly barring a corporate

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**Application:** The court applied this interpretation to the facts by stating that the

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## Parties

- **Judges:** Vijai Prata…; Jinan…
- **Appellants:** SREI Equipment…
- **Respondents:** SREE METALIKS…

## Timeline

- **2016-01-01 — MOU with Mining…**: SML entered into an MOU with two leading mining contractors/corporates of Odisha viz.…
- **2016-02-23 — Date of…**: SML has entered into an MOU dated 23.02.2016 with two leading mining…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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