# In the matter of Jyoti Structures Ltd. IA 2025 of 2021 in CP No. 1137-MB-2017

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00040. The case involves applications (IA 2025, IA 2028, and IA 2035 of 2021) filed by Union Bank of…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jyoti-structures-ltd-ia-2025-of-2021-in-cp-no-1137-mb-2017-d6337ddd

## Summary

### Background

The case involves applications (IA 2025, IA 2028, and IA 2035 of 2021) filed by Union Bank of India, Bank of Maharashtra, and Central Bank of India, respectively, in CP (IB) No. 1137/MB/2017. These banks, acting as Dissenting/Abstaining Financial Creditors (FCs), sought modification of the Resolution Plan to ensure equal treatment in payment compared to Assenting FCs. The Corporate Insolvency Resolution Process (CIRP) of Jyoti Structures Limited was initiated following the admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. A Resolution Plan submitted by Mr. Sharad Sanghi was initially approved by a majority of the Committee of Creditors (CoC), but later, some creditors changed their voting. The Resolution Plan was initially rejected by

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Jyoti Structures Limited was initiated following the admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. A Resolution Plan submitted by Mr. Sharad Sanghi was initially approved with 62.6% of CoC members on 27.03.2018. Subsequently, three creditors changed their voting from Dissenting to Assenting, and one more creditor abstained, resulting in over 81% approval on 06.04.2018. The Resolution Professional approached the Adjudicating Authority (AA) for approval, but it was rejected on 31.07.2018 due to the expiry of the CIRP period. The Resolution Applicant appealed to NCLAT, which remitted the case back to the AA for approval, with a modification that the plan be implemented within 12

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to modify the approved Resolution Plan at …

**Ratio:** A Resolution Plan, once approved by the Adjudicating Authority, is binding on all

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**Reasoning:** The court reasoned that allowing modifications to an approved Resolution Plan would

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**Interpretation:** This interpretation reinforces the principle that an approved Resolution Plan

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**Application:** In this case, the Adjudicating Authority rejected the applications seeking

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## Parties

- **Judges:** P.N. Des…; Sh. Kapal Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Jyoti Structure…; Vandana…

## Timeline

- **2017-07-04 — Admission of Company…**: The Company Petition (CP 1137 of 2017) filed under section 7 of the Insolvency and…
- **2017-08-10 — First CoC M…**: The first meeting of the Committee of Creditors…

## 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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