# In the matter of Jagannath Sponge Private Limited IA No. 196-C'TB-2020 In TP No.34-CTB-20l9

> NCLT judgment dated 2021-08-06. Citation: TCN-2021-NCLT-01413. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Aug 2021
- **Citation:** TCN-2021-NCLT-01413
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jagannath-sponge-private-limited-ia-no-196-ctb-2020-in-tp-no34-ctb-20l9-bcbf2933

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 11 of the National Company Law Tribunal Rules, 2016, for urgent listing and approval of a resolution plan for Jagannath Sponge Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 10 of the IBC, which was admitted on 22.04.2019. The Resolution Professional (RP) made public announcements and invited claims from stakeholders. The CIRP period was extended multiple times with the Adjudicating Authority's approval. Two resolution plans were received, and after evaluation and bidding, Omkara Assets Reconstruction Private Limited was declared the H1 bidder. The Committee of Creditors (CoC)

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## Facts

Jagannath Sponge Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). Samya Sengupta was appointed as the Resolution Professional (RP). Public announcements were made to invite claims from stakeholders. The Committee of Creditors (CoC) was formed and held 13 meetings. Two resolution plans were received from Jagadamba Joint Venture and Omkara Assets Reconstruction Private Limited (Omkara ARC). Omkara ARC was declared the highest bidder with a proposal of Rs. 9.05 crores. The CoC approved Omkara ARC's resolution plan with 100% voting share. The total claims admitted were Rs. 91,43,04,813.19/- from financial creditors and Rs. 22,37,303/- towards CIRP costs. The

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Omkara Assets Reconstruction Private Limited complies with …

**Ratio:** Sections 30 and 31 of the IBC outline the requirements for the submission and approval of

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**Reasoning:** The NCLT perused the records and heard submissions from the Resolution Professional's

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**Interpretation:** Sections 30 and 31 of the IBC are interpreted to ensure that a resolution plan

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**Application:** The NCLT applied the provisions of Sections 30 and 31 to the specific details

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## Parties

- **Judges:** Rajasekha…; Satya Ranjan…
- **Respondents:** JAGANNATH SPONGE…

## Timeline

- **2019-04-22 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated vide order dated 22.04.2019…
- **2019-04-24 — Public Annou…**: The RP made a public announcement on 24.04.2019 in Form-A regarding the initiation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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