# In the matter of Aristo Texcon Private Limited C.A. (IB) No. 709-KB-2019 in C.P. (IB) No. 570-KB-2018

> NCLT judgment dated 2019-08-20. Citation: TCN-2019-NCLT-01900. The case involves an application by the Resolution Professional under Sections 30(6) and 31 of…

- **Court:** NCLT
- **Order date:** 20 Aug 2019
- **Citation:** TCN-2019-NCLT-01900
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aristo-texcon-private-limited-ca-ib-no-709-kb-2019-in-cp-ib-no-570-kb-2018-58479132

## Summary

### Background

The case involves an application by the Resolution Professional under Sections 30(6) and 31 of the Insolvency & Bankruptcy Code, 2016, read with Regulation 39(4) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons), seeking approval of the Resolution Plan as approved by the Committee of Creditors (CoC) for Aristo Texcon Private Limited. The Corporate Person filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) due to its inability to pay debts to Financial Creditors amounting to Rs. 29,00,00,000/-. The Adjudicating Authority admitted the Corporate Person into CIRP and issued a moratorium under Section 14 of the Insolvency

…

## Facts

Aristo Texcon Private Limited faced financial difficulties and was unable to pay its debts to Financial Creditors, which amounted to Rs. 29,00,00,000/-. Consequently, the company filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority admitted the company into CIRP and imposed a moratorium. An Interim Resolution Professional (IRP) was appointed, who invited claims from creditors. Claims were received from Canara Bank, North Eastern Development Finance Corporation Ltd., and Punjab National Bank. The IRP was later replaced by Ms. Mamta Binani as the Resolution Professional (RP). The RP prepared an Information Memorandum and sought resolution plans. Four

…

## Issues and analysis

### Issue 1: Whether the objection raised by Canara Bank against the approval of the resolution plan can be …

**Ratio:** The Adjudicating Authority (NCLT) cannot sit in appeal against the financial decisions

…

**Reasoning:** The court relied on the Supreme Court's decision in K. Sashidhar Vs. Indian Overseas Bank

…

**Interpretation:** The principle of 'commercial wisdom' grants significant autonomy to the CoC in

…

**Application:** The court applied this principle by rejecting Canara Bank's objection, stating

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Aristo Texcon…

## Timeline

- **2018-08-31 — Admission in…**: The Adjudicating Authority admitted the Corporate Person into CIRP and issued a…
- **2018-09-28 — Replacement…**: In the first meeting of the Committee of Creditors (CoC), the Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/aristo-texcon-private-limited-ca-ib-no-709-kb-2019-in-cp-ib-no-570-kb-2018-58479132