# In the matter of LML Ltd. CP No. (IB)-55-ALD-2017 WITH CA No. 73-2018

> NCLT judgment dated 2018-03-23. Citation: TCN-2018-NCLT-01645. The case involves CP No.(IB)55/ALD/2017 with CA No.73/2018 concerning LML Limited, a corporate…

- **Court:** NCLT
- **Order date:** 23 Mar 2018
- **Citation:** TCN-2018-NCLT-01645
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lml-ltd-cp-no-ib-55-ald-2017-with-ca-no-73-2018-a82b9630

## Summary

### Background

The case involves CP No.(IB)55/ALD/2017 with CA No.73/2018 concerning LML Limited, a corporate debtor. The company petition was filed under Section 7 of the Insolvency and Bankruptcy Code and was admitted on 2017-05-30. Anil Goel was appointed as the Resolution Professional (RP) for the Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (COC) sought an extension of 90 days for the Resolution Plan, which was approved on 2017-11-24. Rimjhim Ispat Limited was declared the H1 bidder. However, the Resolution Plan submitted by Rimjhim Ispat Ltd. was rejected by the COC with a vote share of 78.40%.

## Facts

LML Limited, a company incorporated under the Companies Act, 1956, underwent Corporate Insolvency Resolution Process (CIRP) following the admission of a petition under Section 7 of the Insolvency and Bankruptcy Code. Anil Goel was appointed as the Resolution Professional (RP). The Committee of Creditors (COC) sought an extension for the Resolution Plan, which was approved. Rimjhim Ispat Limited emerged as the highest bidder (H1). However, the Resolution Plan submitted by Rimjhim Ispat Ltd. was rejected by the COC with a 78.40% vote share against it. The RP then submitted a report under Section 33(1)(a) of the I&B Code for initiating liquidation. The RP failed to submit the progress report/resolution plan within the extended CIRP period, which expired on 2018-02-25.

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Rimjhim Ispat Ltd. should be approved despite the …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) emphasizes the importance of the Committee of

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**Reasoning:** The court reasoned that the COC's rejection of the Resolution Plan with a significant

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**Interpretation:** The interpretation of the IBC suggests that the COC's decision is paramount in

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**Application:** In this case, the COC's rejection of the Resolution Plan with a 78.40% vote

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## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Respondents:** LML LIM…

## Timeline

- **2017-05-30 — Admission of Company…**: The company petition filed under Section 7 of the Insolvency and Bankruptcy code was…
- **2017-05-30 — Appointment of…**: Sh. Anil Goel was appointed as the Resolution Professional (RP) for completion of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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