# In the matter of Diamond Engineering (Chennai) Pvt. Ltd. MA-936-2019 in CP-507-IB-2017

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01173. The case involves a resolution plan for M/s. Diamond Engineering (Chennai) Private Limited, a…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diamond-engineering-chennai-pvt-ltd-ma-936-2019-in-cp-507-ib-2017-6a5b2f78

## Summary

### Background

The case involves a resolution plan for M/s. Diamond Engineering (Chennai) Private Limited, a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated after CP/507/IB/2017 was filed by the Operational Creditor, M/s. Shah Brothers Ispat Private Limited. The Resolution Professional invited bids for resolution plans, but none reached the final stage. Amendments to the I&B Code regarding promoters and MSMEs led to the corporate debtor being declared an MSME, allowing the promoters to file a resolution plan. The CoC rejected the plan multiple times. The CoC was directed to identify a resourceful Financial Sponsor. A resolution plan was approved by the CoC with 100% voting share.

## Facts

M/s. Diamond Engineering (Chennai) Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by M/s. Shah Brothers Ispat Private Limited. The Resolution Professional (RP) invited bids for resolution plans, but none were finalized. The Corporate Debtor was declared an MSME, allowing the promoters to submit a resolution plan. The CoC rejected the plan multiple times before approving a plan supported by Anacap Financial Partners LLP, UK, with 100% voting share. The resolution plan addresses settlement of dues to financial creditors, operational creditors, and statutory authorities. The plan includes a one-time settlement (OTS) offered to State Bank of India (SBI), the lead member of the CoC with 78% voting share. The plan also seeks concessions,

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## Issues and analysis

### Issue 1: Whether the Resolution Plan filed meets the …

**Ratio:** Section 30(2) of the I&B Code, 2016, outlines the requirements that a resolution plan

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**Reasoning:** The Adjudicating Authority determined that the Resolution Plan filed by the Resolution

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

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**Application:** The Adjudicating Authority applied the requirements of Section 30(2) to the

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## Parties

- **Judges:** Ch. Mohd Sharief…; Anil Ku…
- **Appellants:** V. Ma…
- **Respondents:** M/s. Diamond…; M/s. Shah…

## Timeline

- **2017-06-06 — Filing of CP/50…**: CP/507/IB/2017 filed by the Operational Creditor viz., M/s. Shah Brothers Ispat Private…
- **2018-11-09 — Order in MA/5…**: This Bench vide Order dated 09.11.2018 passed in MA/531/2018 held that 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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