# In the matter of Hind Motors India Limited CP (IB) No. 06-Chd-CHD-2017

> NCLT judgment dated 2017-09-12. Citation: TCN-2017-NCLT-00427. The case pertains to the insolvency resolution of Hind Motors India Limited. The corporate…

- **Court:** NCLT
- **Order date:** 12 Sept 2017
- **Citation:** TCN-2017-NCLT-00427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hind-motors-india-limited-cp-ib-no-06-chd-chd-2017-61b4b3eb

## Summary

### Background

The case pertains to the insolvency resolution of Hind Motors India Limited. The corporate insolvency resolution process (CIRP) was initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. An interim resolution professional (IRP), Mr. Krishan Vrind Jain, was appointed, and a moratorium was declared. The Committee of Creditors (CoC) was constituted, and several meetings were held to consider a resolution plan. The resolution plan proposed by Mr. Ashish Mohan Gupta was rejected by the CoC. The CoC recommended the company for liquidation due to the rejection of the resolution plan and informed the NCLT Chandigarh Bench accordingly.

## Facts

Hind Motors India Limited underwent Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Krishan Vrind Jain was appointed as the Interim Resolution Professional (IRP). A moratorium was declared under Section 14 of the IBC. The Committee of Creditors (CoC) was formed, comprising Union Bank of India, ICICI Bank, SIDBI, and Fixed Deposit holders. Multiple CoC meetings were held between April and September 2017. A resolution plan proposed by Mr. Ashish Mohan Gupta was rejected by the CoC due to a lack of appropriate funding sources and non-compliance with IBC guidelines. The CoC, with 78.49% voting share, recommended liquidation. Mr. Gupta was in custody due to an FIR. The 180-day CIRP period expired on

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## Issues and analysis

### Issue 1: Whether the resolution plan proposed by Representative …

**Ratio:** The resolution plan must comply with the provisions of the Insolvency and Bankruptcy

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**Reasoning:** The resolution plan was rejected by the Committee of Creditors due to the lack of

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**Interpretation:** Section 30 of the IBC requires the resolution plan to meet certain requirements

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**Application:** In this case, the resolution plan failed to meet the requirements of the IBC

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## Parties

- **Judges:** R.P.Nag…
- **Respondents:** Hind Motors India…

## Timeline

- **2017-03-09 — Admission of CP (IB)…**: CP (IB) NO. 06/Chd/2017 filed under Section 10 of the Insolvency and Bankruptcy Code,…
- **2017-03-09 — Moratorium D…**: Moratorium declared in terms…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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