# In the matter of Dunar Foods Ltd. & Ors. MA 2166-2019 in CP No.1138-I&BC-MB-MAH-2017

> NCLT judgment dated 2019-11-26. Citation: TCN-2019-NCLT-00445. The case involves an application under Section 30(1) & (6) and an order under section 31 of the…

- **Court:** NCLT
- **Order date:** 26 Nov 2019
- **Citation:** TCN-2019-NCLT-00445
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dunar-foods-ltd-ors-ma-2166-2019-in-cp-no1138-ibc-mb-mah-2017-6b81aed9

## Summary

### Background

The case involves an application under Section 30(1) & (6) and an order under section 31 of the Insolvency & Bankruptcy Code 2016, concerning the corporate insolvency resolution process (CIRP) of Dunar Foods Limited. State Bank of India, the financial creditor, initiated the process by filing a petition against Dunar Foods Limited. The petition was admitted on 22.12.2017. The resolution professional (RP) sought an extension of the CIRP period, which was granted. Several attempts were made to invite resolution plans, and ultimately, a plan submitted by Mr. Amit Gupta was approved by the Committee of Creditors (CoC). The resolution plan proposed a total payment of ₹87.10 crore. The RP confirmed that the resolution applicant met the requirements of Section 29A of

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## Facts

Dunar Foods Limited (DFL) was incorporated on September 23, 1997, and is engaged in the business of processing, trading, and exporting Basmati Rice. In 2008, DFL launched branded rice under the name "DUNAR" and expanded aggressively. In 2013, the company became involved in the National Spot Exchange Ltd (NSEL) scam, where an associated company, P.D. Agroprocessors Pvt. Ltd, was indicted with a net liability of Rs.637.35 Cr to NSEL. It was alleged that the money received by P.D. Agro was diverted to Dunar Foods Ltd. DFL raised significant debts with high-interest costs, leading to operational losses and erosion of working capital. The company was classified as NPA by a consortium of Banks in August 2014. State Bank of India filed a petition under Section 7 of

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mr. Amit Gupta meets the requirements of the Insolvency …

**Ratio:** The Resolution Plan must satisfy the minimum threshold of approval by the Committee of

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**Reasoning:** The CoC approved the Resolution Plan with a majority of 96.92%, later revised to 100%.

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**Interpretation:** The IBC requires a resolution plan to be approved by a certain percentage of

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**Application:** In this case, the Resolution Plan was approved by the CoC with the required

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Appellants:** State Bank of…
- **Respondents:** Dunar Foods…; Dunar Food…
- **Advocates:** Rahul Ga…

## Timeline

- **1997-09-23 — Incorporation of Dunar…**: Dunar Foods Limited…
- **2014-08-01 — Classificatio…**: Dunar Foods Limited was classified as a Non-Performing Asset (NPA) by a consortium of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(1) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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