# In the matter of Magma Autolinks Pvt. Ltd. CA No. 522-2019 In CP (IB) No.127-Chd-HP-2018

> NCLT judgment dated 2019-11-07. Citation: TCN-2019-NCLT-00685. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Magma Autolinks Pvt.…

- **Court:** NCLT
- **Order date:** 7 Nov 2019
- **Citation:** TCN-2019-NCLT-00685
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/magma-autolinks-pvt-ltd-ca-no-522-2019-in-cp-ib-no127-chd-hp-2018-55d526ba

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Magma Autolinks Pvt. Ltd. initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by the Resolution Professional (RP) under Section 30(6) of the IBC, seeking approval of the resolution plan approved by the Committee of Creditors (CoC). The CIRP was initiated after the corporate debtor defaulted, and an Interim Resolution Professional (IRP) was appointed. Public announcements were made to invite claims from creditors. The CoC was constituted, and meetings were held to discuss and evaluate resolution plans. Several meetings of the CoC were conducted to discuss the resolution plan, eligibility criteria for resolution applicants, and other procedural

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## Facts

Magma Autolinks Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated following a default by the company, leading to the appointment of an Interim Resolution Professional (IRP) and subsequent constitution of a Committee of Creditors (CoC). Public announcements were made to invite claims from financial and operational creditors, as well as workmen and employees. The CoC comprised six financial creditors, including State Bank of India and Tanishka Automotive Private Limited, each holding a significant voting share. The IRP appointed valuers to determine the liquidation value of the corporate debtor. Several meetings of the CoC were held to discuss and evaluate resolution plans. One of the

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## Issues and analysis

### Issue 1: Whether the resolution plan meets the requirements of Section 30(2) of the Insolvency and …

**Ratio:** Section 30(2) of the IBC mandates that a resolution plan must provide for the payment of

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**Reasoning:** The Adjudicating Authority examined the resolution plan to ensure it complied with the

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**Interpretation:** Section 30(2) sets out the minimum requirements that a resolution plan must

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**Application:** The resolution plan was found to comply with Section 30(2) as it provided for

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Respondents:** Magma Autolinks…

## Timeline

- **2018-09-13 — CIRP Init…**: Order admitting the insolvency petition and initiating the Corporate Insolvency…
- **2018-09-20 — Appointment…**: Appointment of the Interim…

## Legal provisions

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

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