# 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-01183. The case involves a resolution plan submitted under Section 30(6) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diamond-engineering-chennai-pvt-ltd-ma-936-2019-in-cp-507-ib-2017-ab1b62f5

## Summary

### Background

The case involves a resolution plan submitted under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Diamond Engineering (Chennai) Private Limited 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 were made. The Corporate Debtor was declared an MSME, allowing promoters to file a resolution plan. The CoC rejected the plan multiple

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Diamond Engineering (Chennai) Private Limited following the filing of CP/507/IB/2017 by M/s. Shah Brothers Ispat Private Limited, an Operational Creditor. The Resolution Professional (RP) invited bids for resolution plans, but none reached the final stage. The Corporate Debtor was declared an MSME, allowing the promoters to file a resolution plan. The Committee of Creditors (CoC) initially rejected the plan multiple times, recommending liquidation, but was later asked to reconsider. A financial sponsor, Anacap Financial Partners LLP, UK, was identified. The resolution plan was approved by the CoC with 100% voting share. The plan includes provisions for settling dues to financial creditors,

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## Issues and analysis

### Issue 1: Whether the Resolution Plan 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 found that the Resolution Plan filed with the application

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**Interpretation:** Section 30(2) sets the mandatory criteria for a resolution plan to be

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**Application:** The court applied the requirements of Section 30(2) to the submitted Resolution

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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 — Initiation…**: CP/507/IB/2017 filed by the Operational Creditor, M/s. Shah Brothers Ispat Private…
- **2018-11-09 — Order declaring…**: The Bench passed an order in MA/531/2018 holding that the Corporate Debtor is an MSME and…

## 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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