# In the matter of Lemon Electronics Limited IA No. 243-(ND)-2021 In  Company Petition No. (IB) 394-(ND)-2019

> NCLT judgment dated 2021-05-13. Citation: TCN-2021-NCLT-02137. The application was filed by the Resolution Professional, Mr. Umesh Garg, for approval of the…

- **Court:** NCLT
- **Order date:** 13 May 2021
- **Citation:** TCN-2021-NCLT-02137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lemon-electronics-limited-ia-no-243-nd-2021-in-company-petition-no-ib-394-nd-201-fcbf646f

## Summary

### Background

The application was filed by the Resolution Professional, Mr. Umesh Garg, for approval of the Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016. An application was filed by Fine Group Corporation Limited/ Operational Creditor under Section 9 of the Code for initiating Corporate Insolvency Resolution Process against Lemon Electronics Limited/ Corporate Debtor. The Bench admitted the Section 9 application and appointed Mr. Umesh Garg as the Interim Resolution Professional (IRP). The applicant made a public announcement intimating the commencement of Corporate Insolvency Resolution Process of the Corporate Debtor and for calling the creditors to submit their claims.

## Facts

Fine Group Corporation Limited, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Lemon Electronics Limited, the Corporate Debtor. The application was admitted, and Mr. Umesh Garg was appointed as the Interim Resolution Professional (IRP). Due to the COVID-19 pandemic, the government declared a nationwide lockdown, which affected the CIRP timelines. The Insolvency and Bankruptcy Board of India (IBBI) introduced Regulation 40C to provide relaxations in CIRP timelines. The Committee of Creditors (CoC) was formed, and Mr. Umesh Garg was appointed as the Resolution Professional. The CoC approved the resolution plan with a 99.61% voting share. The

…

## Issues and analysis

### Issue 1: Whether the resolution plan, as approved by the CoC, is in accordance with the provisions of the …

**Ratio:** Section 30(2) read with Section 31 of the Code specifies the requirements for a

…

**Reasoning:** The Adjudicating Authority considered the resolution plan and found it to be in

…

**Interpretation:** Section 30(2) outlines the mandatory requirements that a resolution plan must

…

**Application:** The Adjudicating Authority determined that the resolution plan submitted by the

…

## Parties

- **Judges:** DEEPTI M…; SUMΙΤΑ PURK…
- **Appellants:** Umesh…
- **Respondents:** Lemon Electronics…

## Timeline

- **2019-01-01 — Application…**: An application bearing C.P. No. IB-243/(ND)/2019 was filed by Fine Group corporation…
- **2020-02-27 — Admission of Ap…**: This Bench vide order dated 27.02.2020 admitted the Section 9 application and appointed…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/lemon-electronics-limited-ia-no-243-nd-2021-in-company-petition-no-ib-394-nd-201-fcbf646f