# In the matter of Jyoti Structures Ltd. MA 491-2018,MA 341-2018, MA 515-2018, MA 410-2018, MA 91-2018, IA 35-2018 & IA 30-2018 In CP (IB) 1137(MB)-2017

> NCLT judgment dated 2018-07-31. Citation: TCN-2018-NCLT-01041. The case involves multiple applications (MA 491/2018, MA 341/2018, MA 515/2018, MA 410/2018, MA…

- **Court:** NCLT
- **Order date:** 31 Jul 2018
- **Citation:** TCN-2018-NCLT-01041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jyoti-structures-ltd-ma-491-2018ma-341-2018-ma-515-2018-ma-410-2018-ma-91-2018-i-754d7c17

## Summary

### Background

The case involves multiple applications (MA 491/2018, MA 341/2018, MA 515/2018, MA 410/2018, MA 91/2018, IA 35/2018 & IA 30/2018) filed in CP (IB) 1137(MB)/2017 under Section 60(5) & 31 of the Insolvency and Bankruptcy Code (IBC), 2016, concerning the corporate insolvency resolution process (CIRP) of Jyoti Structures Ltd. State Bank of India initiated the CIRP under Section 7 of the IBC. The Resolution Professional (RP) sought directions regarding the validity of affirmative votes on a resolution plan. The resolution plan initially failed to achieve the requisite 75% voting share, but the RP later sought to include votes from dissenting and abstaining creditors to reach the threshold. Several financial creditors, including Allahabad Bank and DBS Bank, opposed

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## Facts

1. State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Jyoti Structures Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.
2. Vandana Garg was appointed as the Resolution Professional (RP).
3. A resolution plan was presented to the Committee of Creditors (CoC).
4. E-voting on the resolution plan commenced on March 26, 2018, and concluded on March 27, 2018.
5. The initial e-voting results showed that 62.66% of the votes were in favor of the resolution plan, 23.12% were against, and 14.21% abstained, failing to meet the required 75% approval threshold under Section 30(4) of the IBC.
6. After the e-voting, some financial creditors, including IDBI Trusteeship Services Ltd. and Indian Bank, requested that their votes be

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## Issues and analysis

### Issue 1: Whether the 75% voting threshold for approval of a resolution plan under Section 30(4) of the …

**Ratio:** The 75% voting threshold under

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**Reasoning:** The NCLT reasoned that the language of Section 30(4) is clear and unambiguous, requiring

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**Interpretation:** Section 30(4) of the IBC is interpreted as setting a clear and non-negotiable

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**Application:** The NCLT applied this ratio to the facts of the case, noting that the initial

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** Vandana…
- **Respondents:** Jyoti Structures…; State Bank of…

## Timeline

- **2017-07-04 — Admission of Company…**: State Bank of India's petition under Section 7 of the IBC against Jyoti Structures Ltd.…
- **2017-07-12 — RP Takes…**: The Resolution…

## 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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