# In the matter of Gujarat NRE Coke (In Liquidation )  CA (CAA) No. 198-KB-2018

> NCLT judgment dated 2018-05-15. Citation: TCN-2018-NCLT-01403. The case pertains to Gujarat NRE Coke Ltd., which faced financial difficulties due to adverse…

- **Court:** NCLT
- **Order date:** 15 May 2018
- **Citation:** TCN-2018-NCLT-01403
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gujarat-nre-coke-in-liquidation-ca-caa-no-198-kb-2018-5d6fec54

## Summary

### Background

The case pertains to Gujarat NRE Coke Ltd., which faced financial difficulties due to adverse market conditions since 2009. The company's loan account was referred for restructuring under a Corporate Debt Restructuring (CDR) package in 2013-14, but it failed due to coke dumping from China. Subsequently, a Debt Realignment Scheme (DRS) was submitted, but it did not lead to any conclusion. The company then filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) for revival. The application was admitted on 07.04.2017, and Mr. Sumit Binani was appointed as the Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). Pricewaterhouse Coopers (PWC) was appointed to assist in preparing a Resolution Plan. A

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## Facts

Gujarat NRE Coke Ltd. faced financial crisis since 2009 due to adverse market conditions. The company's loan account was referred for restructuring under a Corporate Debt Restructuring (CDR) package in 2013-14, which failed due to coke dumping from China until the end of 2016, leading to the loan account becoming a Non-Performing Asset (NPA). A Debt Realignment Scheme (DRS) was submitted but did not lead to any conclusion. The company filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), which was admitted on 07.04.2017. Sumit Binani was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Pricewaterhouse Coopers (PWC) assisted in preparing a Resolution Plan. An Expression of

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## Issues and analysis

### Issue 1: Whether the Tribunal should sanction a scheme of compromise and arrangement between the applicant, …

**Ratio:** Sections 230 to 232 of the Companies Act, 2013, provide the legal framework for schemes

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**Reasoning:** The Tribunal considered the application filed by Arun Kumar Jagatramka, a member of the

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**Interpretation:** Sections 230 to 232 of the Companies Act, 2013, are interpreted to allow for a

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**Application:** The Tribunal applied the provisions of Sections 230 to 232 by directing the

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Arun Kumar…
- **Respondents:** Gujarat NRE Coke…

## Timeline

- **2013-01-01 — Corporate Debt…**: The loan account of GNCL was referred for restructuring under a CDR package in 2013-14…
- **2015-08-01 — CDR Moratoriu…**: The 2-year moratorium under the CDR…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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