# In the matter of Gujarat NRE Coke Limited C.P. (I.B) No. 182-KB-2017

> NCLT judgment dated 2018-01-11. Citation: TCN-2018-NCLT-01943. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Gujarat NRE Coke…

- **Court:** NCLT
- **Order date:** 11 Jan 2018
- **Citation:** TCN-2018-NCLT-01943
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gujarat-nre-coke-limited-cp-ib-no-182-kb-2017-155c5a5b

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Gujarat NRE Coke Limited. An application under section 10(1) of the Insolvency and Bankruptcy Code, 2016 was filed by the Corporate Debtor, which was admitted by the Adjudicating Authority on April 7, 2017. The CIRP commenced on April 7, 2017, with an initial period of 180 days, later extended by 90 days. The Resolution Professional (RP), Sumit Binani, filed progress reports and sought a resolution plan. RARE Asset Reconstruction Company submitted an expression of interest. However, the resolution plan was not approved by the Committee of Creditors (CoC).

## Facts

Gujarat NRE Coke Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 10(1) of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on April 7, 2017. The Resolution Professional (RP), Sumit Binani, filed progress reports. A resolution plan was submitted by RARE Asset Reconstruction Company. The Committee of Creditors (CoC) did not approve the resolution plan, with only 14.31% voting in favor, while 84.03% voted against it. Employees and workers expressed concerns about job security and proposed an alternative resolution plan. The company was operational and profitable, with 1178 employees. The extended period for CIRP was expiring on January 1, 2018. The Adjudicating Authority considered Section

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by RARE Asset Reconstruction Company met the requirements for …

**Ratio:** Section 31 of the Insolvency and Bankruptcy Code, 2016, requires that a resolution plan

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**Reasoning:** The Resolution Plan received only 14.31% of the voting share in favor, while 84.03% voted

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**Interpretation:** Section 31 mandates a minimum threshold of 75% voting share for the approval of

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**Application:** Since the Resolution Plan failed to secure the required 75% voting share, it

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Respondents:** Gujarat NRE Coke…

## Timeline

- **2017-04-07 — Admission of Ap…**: Application under section…
- **2017-04-07 — CIRP Commen…**: Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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