# In the matter of Maruti Cotex Limited

> NCLT judgment dated 2020-07-02. Citation: TCN-2020-NCLT-01078. The case pertains to MA 422/2019 filed in CP 241/30(6)/MB/2018 before the National Company Law…

- **Court:** NCLT
- **Order date:** 2 Jul 2020
- **Citation:** TCN-2020-NCLT-01078
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maruti-cotex-limited-68744637

## Summary

### Background

The case pertains to MA 422/2019 filed in CP 241/30(6)/MB/2018 before the National Company Law Tribunal (NCLT), Mumbai Bench. The application was filed by the Resolution Professional, Ms. Sujata Chattopadhyay, seeking approval of the resolution plan for the Corporate Debtor, Maruti Cotex Ltd, as approved by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Maruti Cotex Ltd. The Interim Resolution Professional was appointed, and subsequently, the applicant was appointed as the Resolution Professional. The CoC was formed, and various meetings were held to consider resolution plans. Several extensions were granted for

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Maruti Cotex Ltd. A petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) was admitted by the NCLT. Ms. Sujata Chattopadhyay was appointed as the Resolution Professional (RP). The RP invited Expression of Interest (EoI) for resolution plans, and several extensions were granted for submission. The RP received claims from Financial Creditors amounting to Rs.574.98 crores and from Operational Creditors amounting to Rs.5.03 crores. The liquidation value of the assets of the Corporate Debtor was ascertained by two valuers as Rs.84.12 crores and Rs.92.01 crores, with an average of Rs.88.07 crores. The Committee of Creditors (CoC) considered multiple resolution plans. Ultimately, the CoC

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the Resolution Applicant meets the requirements of Section …

**Ratio:** Section 30(2) of the IBC outlines the requirements for a resolution plan, including

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**Reasoning:** The NCLT considered the provisions of Section 30 and 31 of the IBC and assessed whether

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**Interpretation:** Section 30 and 31 of the IBC are interpreted to mean that a resolution plan

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**Application:** In this case, the NCLT determined that the resolution plan submitted by the

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Sujata Chattopadhy…
- **Respondents:** Maruti Cote…

## Timeline

- **2019-05-08 — Admission of…**: The Adjudicating Authority admitted a petition against the Corporate Debtor, Maruti Cotex…
- **2019-05-11 — Public Annou…**: The Interim Resolution Professional issued a Public Announcement as required under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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