# In the matter of Ashtavinayak Auto Pvt. Ltd. M. A. No. 2714 of 2019
In C.P. No. 2923-IB-2018

> NCLT judgment dated 2021-03-05. Citation: TCN-2021-NCLT-02807. The case pertains to an application under Section 30(6) and Section 31 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 5 Mar 2021
- **Citation:** TCN-2021-NCLT-02807
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ashtavinayak-auto-pvt-ltd-m-a-no-2714-of-2019-in-cp-no-2923-ib-2018-a0df734b

## Summary

### Background

The case pertains to an application under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016, for approval of a resolution plan for Ashtavinayak Auto Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated by the NCLT Mumbai Bench on 06.11.2018. Mr. Navin Srichand Kanjwani was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Rajat Mukherjee. Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, and prospective resolution applicants were invited. Leadadroit Services Pvt. Ltd. submitted a resolution plan which was revised after negotiations. The CoC approved the resolution plan with a voting share of 94.84%.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Ashtavinayak Auto Pvt. Ltd. was initiated on 06.11.2018. Navin Srichand Kanjwani was initially appointed as the Interim Resolution Professional (IRP), later replaced by Rajat Mukherjee. Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, consisting of Janakalyan Sahakari Bank Limited, ASREC India Limited, and Beli Sharma & Company. Leadadroit Services Pvt. Ltd. submitted a resolution plan, which was revised after negotiations with the RP. The CoC approved the resolution plan with a voting share of 94.84% on 26.07.2019. The resolution plan includes provisions for payment of CIRP costs, financial creditors (Rs. 8.60 Lacs), and operational creditors (Rs. 4

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s. Leadadroit Services Pvt. Ltd. meets the requirements …

**Ratio:** Section 30(2) of the IBC outlines the requirements that a resolution plan must meet to be

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**Reasoning:** The NCLT reviewed the Resolution Plan and found that it meets the requirements of Section

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**Interpretation:** Section 30(2) is interpreted to ensure that the resolution plan adequately

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**Application:** The NCLT applied the requirements of Section 30(2) to the specific details of

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Rajat Muk…
- **Respondents:** Ashtavinayak Auto…; M/s. Ashtavinayak…

## Timeline

- **2018-11-06 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by…
- **2018-11-17 — Public Annou…**: IRP published a public announcement inviting claims from the creditors of the Corporate…

## 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)

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