# Approval of Resolution Plan - Sree Metaliks Limited

> NCLT judgment dated 2017-11-07. Citation: TCN-2017-NCLT-00237. The case pertains to the insolvency resolution of Sree Metaliks Limited (SML) under the…

- **Court:** NCLT
- **Order date:** 7 Nov 2017
- **Citation:** TCN-2017-NCLT-00237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-sree-metaliks-limited-e91375e3

## Summary

### Background

The case pertains to the insolvency resolution of Sree Metaliks Limited (SML) under the Insolvency and Bankruptcy Code, 2016 (IBC). An insolvency petition was filed, and Shri Kuldeep Verma was appointed as the Resolution Professional (RP). The RP submitted a resolution plan under section 30(6) of the IBC, which was approved by the Committee of Creditors (CoC) with a 78.53% voting share. SREI Equipment Finance Limited, a financial creditor, raised objections to the plan, primarily concerning the eligibility of the corporate debtor to submit a resolution plan, the classification of secured creditors, and the lack of transparency in the plan. The CoC considered these objections and the RP's clarifications before approving the resolution plan.

## 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, raised objections to the resolution plan submitted by Mr. Mahesh Kumar Agarwal, the promoter of SML. The objections included: 1) A Corporate Debtor cannot be the resolution applicant under the IBC for its insolvency resolution. 2) A resolution plan that was rejected by CoC cannot be resubmitted for fresh consideration of COC. 3) The SML Plan sought to classify secured creditors in two classes on erroneous and illegal assumptions and presumptions in gross violation of the IBC. 4) The SML Plan classifies secured creditors by consortium arrangement in gross violation of the IBC. 5)

…

## Issues and analysis

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

**Ratio:** Section 30 of I.B. Code 2016, Resolution Plan can be submitted by any person even if he

…

**Reasoning:** The court reasoned that the IBC does not explicitly prohibit a corporate debtor or its

…

**Interpretation:** This interpretation clarifies that the focus is on the viability and fairness

…

**Application:** In this case, the resolution plan was submitted by a promoter of the Corporate

…

## Parties

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

## Timeline

- **2017-09-25 — CoC Meet…**: CoC rejected the resolution plan submitted by Mr Mahesh Kumar Agarwal due to non-clarity…
- **2017-10-04 — CoC Meet…**: The revised Resolution Plan dated 26th September 2017 submitted by SREI was discussed and…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-sree-metaliks-limited-e91375e3