# In the matter of Ashika Commercial Private Limited I.A.(IB) No.600-KB-2020
in CP (IB) No. 503-KB-2018

> NCLT judgment dated 2020-08-12. Citation: TCN-2020-NCLT-00858. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Ashika Commercial…

- **Court:** NCLT
- **Order date:** 12 Aug 2020
- **Citation:** TCN-2020-NCLT-00858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ashika-commercial-private-limited-iaib-no600-kb-2020-in-cp-ib-no-503-kb-2018-6967bb67

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Ashika Commercial Private Limited. The CIRP was initiated after the Corporate Debtor defaulted on financial debt of Rs. 71,30,560. Mr. Manish Jain was appointed as the Interim Resolution Professional (IRP) and later replaced by Mr. Rajesh Kumar Agarwal. The Resolution Professional (RP) invited resolution plans, and after several rounds of bidding, Mr. Sanwarmal Jain was declared the successful resolution applicant. The resolution plan was approved by the Committee of Creditors (CoC) with 100% voting share.

## Facts

Ashika Commercial Private Limited (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP) on August 22, 2019, due to defaulting on a financial debt of Rs. 71,30,560. Manish Jain was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Rajesh Kumar Agarwal. The Resolution Professional (RP), Rajesh Kumar Agarwal, invited Expressions of Interest (EOI) and received four applications. The RP invited these applicants to submit resolution plans. Two resolution plans were received and discussed with the Committee of Creditors (CoC). Sanwarmal Jain was declared the H1 bidder after multiple rounds of outbidding. The resolution plan of Sanwarmal Jain was put to vote and passed with 100% value of votes. A Letter of

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## Issues and analysis

### Issue 1: Whether the Resolution Plan of Ashika Commercial Private Limited, submitted by Mr. Sanwarmal Jain, …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016, provides that if the

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**Reasoning:** The court reasoned that the resolution plan was approved by the CoC with 100% voting

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a resolution plan

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**Application:** The court applied Section 31(1) to the facts of the case, noting that the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Rajesh Kumar…
- **Respondents:** Ashika Commercial…

## Timeline

- **2019-08-22 — CIRP Init…**: Ashika Commercial Private Limited was admitted into Corporate Insolvency Resolution…
- **2019-08-27 — Public Announcement of…**: Mr. Manish Jain, the Interim Resolution Professional (IRP), made a public announcement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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