# In the matter of Hind Motors Mohali Pvt. Ltd. CP (IB) No. 03-Chd-2017

> NCLT judgment dated 2017-09-12. Citation: TCN-2017-NCLT-00429. The case pertains to the insolvency resolution process of M/s. Hind Motors Mohali Private…

- **Court:** NCLT
- **Order date:** 12 Sept 2017
- **Citation:** TCN-2017-NCLT-00429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hind-motors-mohali-pvt-ltd-cp-ib-no-03-chd-2017-3d6a8427

## Summary

### Background

The case pertains to the insolvency resolution process of M/s. Hind Motors Mohali Private Limited initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The insolvency resolution process was admitted on 20.02.2017, and a moratorium was declared. Mr. Manik Goyal was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC). In a CoC meeting, it was decided to replace Mr. Manik Goyal with another Resolution Professional. Mr. Krishan Vrind Jain was appointed as the Resolution Professional, and his appointment was confirmed by the IBBI. The CoC resolved to recommend the company for liquidation due to its non-working status and lack of a viable resolution plan. The resolution plan submitted by Mr. Ashish

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## Facts

M/s. Hind Motors Mohali Private Limited underwent insolvency resolution under Section 10 of the Insolvency and Bankruptcy Code, 2016. The insolvency process commenced on 20.02.2017. Mr. Manik Goyal initially served as the Interim Resolution Professional, later replaced by Mr. Krishan Vrind Jain. Union Bank of India was the sole financial creditor. A resolution plan submitted by Mr. Ashish Mohan Gupta was rejected by Union Bank of India due to a lack of firm commitment for loan sanction. The Committee of Creditors, holding 100% voting share, resolved for liquidation. The company was reported to be a non-working unit with no apparent cash flow. The 180-day resolution period expired on 19.08.2017. The financial creditor, Union Bank of India, had a claim of ₹3.51 crores,

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mr. Ashish Mohan Gupta was rightly rejected by the …

**Ratio:** A resolution plan must be viable and acceptable to the financial creditors. The financial

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**Reasoning:** The Tribunal noted that the resolution plan submitted by Mr. Ashish Mohan Gupta lacked a

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, empowers the financial creditors to

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**Application:** In this case, the financial creditor, Union Bank of India, reasonably rejected

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## Parties

- **Judges:** R.P.Nag…
- **Respondents:** M/s. Hind Motors…

## Timeline

- **2017-02-20 — Admission of Insolvency…**: The insolvency resolution process was…
- **2017-02-23 — Public Announcement by…**: Mr. Manik Goyal, the Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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