# 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-02808. 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-02808
- **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-2018-9b433121

## Summary

### Background

The case pertains to an application 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 Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated by the NCLT Mumbai Bench 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) decided to replace the IRP with Rajat Mukherjee. The resolution plan was submitted by Leadadroit Services Pvt. Ltd.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against AVK Automart Pvt. Ltd. on 06.11.2018. Navin Srichand Kanjwani was initially appointed as the Interim Resolution Professional (IRP) but was later replaced by Rajat Mukherjee. A public announcement was made on 17.11.2018, inviting claims from creditors. The Committee of Creditors (CoC) decided on 08.01.2019 to replace the IRP with Rajat Mukherjee. The appointment of Rajat Mukherjee as the Resolution Professional (RP) was confirmed on 18.02.2019. The IRP received three claims from financial creditors (Bank of India, Omkara Asset Reconstruction Pvt. Ltd., and ASREC India Ltd.) and one operational creditor (Beli Sharma and Company). The RP issued Form-G on 14.02.2019, inviting expressions of interest

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Leadadroit Services Pvt. Ltd. meets the requirements of …

**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 to ensure it complied with Section 30(2) of the

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**Interpretation:** Section 30(2) sets the minimum standards for a resolution plan to be considered

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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:** M/s. AVK Automart…; M/s. Beli Sharma…

## Timeline

- **2018-11-06 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2018-11-17 — Public Annou…**: Public announcement made…

## 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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