# In the matter of Fenace Auto Ltd. CA. 446-C-II-ND-2018 In (IB)-364(ND)-2017

> NCLT judgment dated 2018-10-17. Citation: TCN-2018-NCLT-00546. The case involves a petition filed by Vesuvius India Ltd, an Operational Creditor, for…

- **Court:** NCLT
- **Order date:** 17 Oct 2018
- **Citation:** TCN-2018-NCLT-00546
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fenace-auto-ltd-ca-446-c-ii-nd-2018-in-ib-364nd-2017-90434ca7

## Summary

### Background

The case involves a petition filed by Vesuvius India Ltd, an Operational Creditor, for initiating the Corporate Insolvency Resolution Process (CIRP) against Fenace Auto Ltd, the Corporate Debtor. The petition was admitted on November 15, 2017. Mr. Punkaj Jain was appointed as the Interim Resolution Professional (IRP). A public announcement was made on December 16, 2017. The RP received claims from secured and operational creditors, and employees. The IRP was confirmed as the RP, and he filed a comprehensive report culminating in a Resolution Plan for the Corporate Debtor.

## Facts

Vesuvius India Ltd., an Operational Creditor, filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Fenace Auto Ltd., the Corporate Debtor. The petition was admitted on 2017-11-15. Mr. Punkaj Jain was appointed as the Interim Resolution Professional (IRP). Public announcement was made on 2017-12-16. The RP received claims of Rs. 4,83,41,22,402/- from secured creditors and Rs. 21,75,90,230/- from Operational Creditors. A further claim of Rs. 49,79,217.13 was received from employees. The IRP was confirmed as RP. The RP filed a comprehensive report culminating in a Resolution Plan. The Resolution Professional admitted a Claim of Rs. 21,75,90,230/- to the Operational Creditors. The Resolution Applicant proposed a pay-out of Rs. 3,01,13,851/-

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the …

**Ratio:** The feasibility and viability of the Resolution Plan are crucial for ensuring the

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**Reasoning:** The court considered the fact that the Resolution Plan was approved by 100% of the

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**Interpretation:** The court interpreted the approval of the COC as a strong indicator of the

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**Application:** In this case, the court relied on the COC's approval and the absence of any

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Vesuvius India…
- **Respondents:** Fenace Aut…

## Timeline

- **2017-11-15 — Petition Ad…**: The petition filed by Vesuvius India Ltd.…
- **2017-12-16 — Public Annou…**: Public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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