# In the matter of AVK Automart Pvt. Ltd. M. A. No. 2713 of 2019 In C.P. No. 2921-IB-2018

> NCLT judgment dated 2021-03-05. Citation: TCN-2021-NCLT-02798. The case pertains to an application filed under Section 30(6) and Section 31 of the Insolvency…

- **Court:** NCLT
- **Order date:** 5 Mar 2021
- **Citation:** TCN-2021-NCLT-02798
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avk-automart-pvt-ltd-m-a-no-2713-of-2019-in-cp-no-2921-ib-2018-1b52d117

## Summary

### Background

The case pertains to an application filed under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016, seeking approval of a resolution plan for AVK Automart Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated by the NCLT Mumbai Bench on 06.11.2018. An Interim Resolution Professional (IRP) was appointed, followed by the appointment of Mr. Rajat Mukherjee as the Resolution Professional (RP). The RP invited claims from creditors and constituted a Committee of Creditors (CoC).

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against AVK Automart Pvt. Ltd. based on an order dated 2018-11-06. Mr. Navin Srichand Kanjwani was initially appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Rajat Mukherjee replaced him as the Resolution Professional (RP) following a decision by the Committee of Creditors (CoC). The RP received claims from three financial creditors (Bank of India, Omkara Asset Reconstruction Pvt. Ltd., and ASREC India Ltd.) and one operational creditor (M/s. Beli Sharma and Company). The RP issued Form-G inviting expressions of interest from prospective resolution applicants (PRAs). Leadadroit Services Pvt. Ltd. submitted a resolution plan, which was revised after negotiations. The CoC approved

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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 specifies the requirements that a resolution plan must meet to

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**Reasoning:** The NCLT reviewed the Resolution Plan to ensure it complied with Section 30(2) of the

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**Interpretation:** Section 30(2) sets out mandatory requirements for a resolution plan, ensuring

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

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Rajat Muk…
- **Respondents:** AVK Automart Pvt.…; M/s. AVK Automart…

## Timeline

- **2018-11-06 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by…
- **2018-11-17 — Public Annou…**: The IRP published a public announcement on 17.11.2018 inviting claims from the creditors…

## 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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