# In the matter of GSL Nova Petrochemicals Limited IA No. 197 of 2021 in CP(IB) No. 770-9-NCLT-AHM-2019

> NCLT judgment dated 2021-10-05. Citation: TCN-2021-NCLT-00861. The application was filed by the Resolution Professional for approval of the resolution plan…

- **Court:** NCLT
- **Order date:** 5 Oct 2021
- **Citation:** TCN-2021-NCLT-00861
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gsl-nova-petrochemicals-limited-ia-no-197-of-2021-in-cpib-no-770-9-nclt-ahm-2019-94aa577a

## Summary

### Background

The application was filed by the Resolution Professional for approval of the resolution plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, read with Section 31 of the Code and Regulation 39(4) of the IBBI Regulations. The Corporate Debtor was admitted into CIRP on 18.03.2020, following an application by the Operational Creditor under Section 9 of the IB Code. The IRP constituted a Committee of Creditors (COC) comprising one Financial Creditor and one Operational Creditor (Garden Silk Mills Limited). The COC approved the resolution plan with 100% voting rights in its meeting dated 27.01.2021.

## Facts

The Resolution Professional filed an application for approval of the resolution plan for GSL Nova Petrochemicals Limited under Section 30(6) of the IBC. The Corporate Debtor was admitted into CIRP on 18.03.2020 based on an application by the Operational Creditor. The COC comprised one Financial Creditor and one Operational Creditor. The COC approved the resolution plan with 100% voting rights on 27.01.2021. The Resolution Plan provides for the settlement of claims of various stakeholders, with a total claim of Rs. 14.33 Crores and an amount proposed to be paid of Rs. 1,620,667/-. The Resolution Applicant proposed to infuse Rs. 100,00,000/- to maintain working capital. The Resolution Applicant sought various reliefs and concessions, including exemptions from taxes and

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant meets the requirements of Section …

**Ratio:** Section 30(2) of the IBC, 2016, and Regulations 37, 38, 38(1A), and 39(4) of the IBBI

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**Reasoning:** The Adjudicating Authority considered the certificate provided by the Resolution

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**Interpretation:** Section 30(2) of the IBC mandates that a resolution plan must meet certain

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**Application:** In this case, the Resolution Professional certified that the Resolution Plan

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Kailash T S…
- **Respondents:** GSL Nova Petrochem…; Sandeep Shivkumar…
- **Advocates:** Nipun Si…; Vishal…

## Timeline

- **2020-03-18 — CIRP Admi…**: The Corporate Debtor was admitted into CIRP vide order dated 18.03.2020 passed by the…
- **2020-06-27 — First COC M…**: In the first meeting dated 27.06.2020 COC resolved to appoint Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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