# In the matter of Associated Lighting System Private Limited

> NCLT judgment dated 2021-12-03. Citation: TCN-2021-NCLT-00273. Alchemist Asset Reconstruction Company Limited, the Financial Creditor, initiated Corporate…

- **Court:** NCLT
- **Order date:** 3 Dec 2021
- **Citation:** TCN-2021-NCLT-00273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/associated-lighting-system-private-limited-17d5977c

## Summary

### Background

Alchemist Asset Reconstruction Company Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Associated Lighting System Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 21.10.2020. Mr. Devendra Singh was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP constituted a Committee of Creditors (CoC) with Alchemist Asset Reconstruction Company Limited as the sole financial creditor holding 100% voting rights. The RP received Expressions of Interest (EOIs) from three applicants, and after scrutiny, shortlisted Arjun Nath and Atmbhu Buildwell Private Limited as Prospective

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## Facts

Alchemist Asset Reconstruction Company Limited initiated CIRP against Associated Lighting System Private Limited under Section 7 of IBC, 2016. The application was admitted on 21.10.2020. Devendra Singh was appointed as IRP and later confirmed as RP. The CoC comprised only Alchemist Asset Reconstruction Company Limited, holding 100% voting rights. The RP published Form-G, inviting resolution plans. Arjun Nath submitted a resolution plan, accompanied by an earnest money deposit of Rs. 10,00,000. The RP vetted the plan to ensure compliance with the Code and Regulations. The CoC approved the resolution plan with 100% votes on 12.07.2021. Arjun Nath provided a Performance Bank Guarantee of Rs. 50,00,000. The resolution plan proposed payments to various stakeholders,

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mr. Arjun Nath should be approved under Section 31 of the …

**Ratio:** Section 31 of the IBC, 2016, provides for the approval of the resolution plan by the

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**Reasoning:** The Adjudicating Authority observed that the CoC had approved the resolution plan

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**Interpretation:** Section 31 of the IBC, 2016, mandates the Adjudicating Authority to approve a

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**Application:** In this case, the resolution plan submitted by Mr. Arjun Nath was approved by

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## Parties

- **Judges:** Bhaskara Pantula…; L. N. G…
- **Respondents:** Associated…
- **Advocates:** Jitesh Ta…

## Timeline

- **2019-01-01 — Filing of Application…**: Alchemist Asset Reconstruction Company Limited filed an application under Section 7 of…
- **2020-10-21 — Admission of Ap…**: The application filed by Alchemist Asset Reconstruction Company Limited was admitted by…

## Legal provisions

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

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