# In the matter of Flowline Instrumentaton Private Limited I.A. No. 440 of 2020 in C.P. (IB) No. 28-BB-2019

> NCLT judgment dated 2020-11-25. Citation: TCN-2020-NCLT-00212. The case involves the Corporate Insolvency Resolution Process (CIRP) of Flowline…

- **Court:** NCLT
- **Order date:** 25 Nov 2020
- **Citation:** TCN-2020-NCLT-00212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flowline-instrumentaton-private-limited-ia-no-440-of-2020-in-cp-ib-no-28-bb-2019-7597f7d5

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of Flowline Instrumentation Private Limited. The CIRP was initiated by Swan Analytische Instrumente AG, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the application on 23.10.2019 and appointed Mr. Hari Babu Thota as the Interim Resolution Professional (IRP), imposing a moratorium under Section 14 of the Code. Public announcement was made inviting claims from creditors. The Committee of Creditors (CoC) was formed, consisting of Indian Bank and M.V.G. Chits Private Limited. The IRP was confirmed as the Resolution Professional (RP). The RP appointed registered valuers to determine the fair value and liquidation value of

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Flowline Instrumentation Private Limited based on an application filed by Swan Analytische Instrumente AG, an operational creditor, under Section 9 of the IBC. The application was admitted on 23.10.2019, and Mr. Hari Babu Thota was appointed as the Interim Resolution Professional (IRP). A moratorium was imposed under Section 14 of the IBC. Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was constituted, comprising Indian Bank (holding 81% voting share) and M.V.G. Chits Private Limited (holding 19% voting share). Mr. Hari Babu Thota was confirmed as the Resolution Professional (RP). The RP appointed registered valuers to assess the fair value and

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mr. Mohan P. Rao jointly with M/s. Millitronic Devices OPC …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016 states that if the Adjudicating

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan and found that it had been

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a Resolution Plan

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**Application:** The Adjudicating Authority applied Section 31(1) to the facts of the case,

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Swan Analytische…
- **Respondents:** Flowline Instrumen…; Mohan P…

## Timeline

- **2019-10-23 — Initiation…**: The Adjudicating Authority admitted the application filed by Swan Analytische Instrumente…
- **2019-10-29 — Public Annou…**: Public announcement was made inviting claims…

## 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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