# In the matter of Nithin Nutritions Private Limited IA No. 08-2021 in CP (IB) No. 160-10-AMR-2019

> NCLT judgment dated 2022-01-05. Citation: TCN-2022-NCLT-04538. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.…

- **Court:** NCLT
- **Order date:** 5 Jan 2022
- **Citation:** TCN-2022-NCLT-04538
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nithin-nutritions-private-limited-ia-no-08-2021-in-cp-ib-no-160-10-amr-2019-9c84846f

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Nithin Nutritions Private Limited. The CIRP was initiated following an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT, Amaravati admitted the petition on 15.11.2019 and appointed Mr. Pavan Kankani as the Interim Resolution Professional (IRP). The IRP constituted a Committee of Creditors (CoC) and invited claims from creditors. Several CoC meetings were held to discuss the resolution plan. The NCLAT, New Delhi, later appointed Mr. B. Naga Bhushan as the Resolution Professional (RP) in place of Mr. Pavan Kankani. Despite multiple attempts, the CoC found the resolution plans submitted to be commercially unviable. The CoC ultimately voted

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## Facts

The NCLT, Amaravati admitted a petition under Section 10 of the IBC, initiating CIRP for M/s. Nithin Nutritions Private Limited on 15.11.2019. Mr. Pavan Kankani was appointed as IRP. The IRP constituted a CoC, with Bank of India as the sole financial creditor initially, later joined by P Sudhir Reddy and T Sahith Reddy. The NCLAT appointed Mr. B. Naga Bhushan as RP, replacing Mr. Pavan Kankani. The RP reverified claims and reconstituted the CoC. The RP published Form G inviting Expression of Interest (EOI) from Prospective Resolution Applicants (PRAs). Only one PRA, M/s. VenAgro, submitted a resolution plan. The CoC found the resolution plan commercially unviable due to a lower resolution amount than contractual dues and conditional terms linked to the release of

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the resolution applicant was commercially viable and …

**Ratio:** The CoC has the authority to assess the commercial viability of a resolution plan and

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**Reasoning:** The CoC found the resolution plan to be commercially unviable because the proposed

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**Interpretation:** The IBC empowers the CoC to make informed decisions regarding the resolution

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**Application:** In this case, the CoC's assessment of the resolution plan's commercial

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** M/s. Nithin…

## Timeline

- **2019-11-15 — CIRP Init…**: NCLT, Amaravati admitted the petition under Section 10 of the IBC, initiating CIRP for…
- **2019-11-18 — Public Annou…**: The Interim Resolution Professional issued Public Announcement in Financial Express…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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