# In the matter of Favourite Fabtech Private Limited IA 503-NCLT-AHM-2021 in CP (IB) 465-9-NCLT-AHM-2018

> NCLT judgment dated 2021-12-14. Citation: TCN-2021-NCLT-00170. The application IA/503(AHM)2021 was filed in CP(IB) 465 of 2018 by Jigar Tarunkumar Bhatt, the…

- **Court:** NCLT
- **Order date:** 14 Dec 2021
- **Citation:** TCN-2021-NCLT-00170
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/favourite-fabtech-private-limited-ia-503-nclt-ahm-2021-in-cp-ib-465-9-nclt-ahm-2-49a14667

## Summary

### Background

The application IA/503(AHM)2021 was filed in CP(IB) 465 of 2018 by Jigar Tarunkumar Bhatt, the Resolution Professional (RP) of Favourite Fabtech Private Limited, under Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (IBBI) regulations, seeking approval of the resolution plan. The Corporate Debtor was admitted into CIRP on 17.03.2020 following an application by the Operational Creditor under Section 9 of the IBC. Malhar Rashmikant Mehta was initially appointed as the Interim Resolution Professional (IRP).

## Facts

Favourite Fabtech Private Limited underwent Corporate Insolvency Resolution Process (CIRP) after being admitted by the Adjudicating Authority on 17.03.2020, based on an application filed by the Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code (IBC). Mr. Malhar Rashmikant Mehta was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Jigar Tarunkumar Bhatt as the Resolution Professional (RP). The Committee of Creditors (CoC), consisting of one financial creditor (Central Bank of India), resolved to replace the IRP and subsequently approved a resolution plan submitted by the Members of the Suspended Management of the Corporate Debtor. The resolution plan proposed to pay the financial creditor Rs. 185.59 lakhs

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the resolution applicant complies with the provisions of …

**Ratio:** Section 30(2) of the IBC and Regulation 38 (3A) of the CIRP Regulations prescribe the

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**Reasoning:** The NCLT perused the contents of the resolution plan and found that it complies with all

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**Interpretation:** Section 30(2) and Regulation 38(3A) are interpreted to ensure that the

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**Application:** The NCLT applied the provisions of Section 30(2) and Regulation 38(3A) to the

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Jigar Tarunkumar…
- **Respondents:** Favourite Fabtech…; Central Bank of…

## Timeline

- **2020-03-17 — Admission in…**: Corporate Debtor was admitted into…
- **2021-01-13 — Public Annou…**: Mr. Malhar Rashmikant Mehta, the IRP,…

## 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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