# In the matter of Paragon Steels Private Limited MA-253 & 254 -2018 In CP-552 & 553- (IB)-2017

> NCLT judgment dated 2018-07-24. Citation: TCN-2018-NCLT-01087. The case involves an application under Section 31 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Jul 2018
- **Citation:** TCN-2018-NCLT-01087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paragon-steels-private-limited-ma-253-254-2018-in-cp-552-553-ib-2017-74b729e0

## Summary

### Background

The case involves an application under Section 31 of the Insolvency and Bankruptcy Code, 2016, regarding the resolution plan for corporate debtors M/s. SMM Steels Re-Rolling Mills Private Limited and M/s. Paragon Steels Private Limited. The Resolution Professional (RP) submitted a resolution plan for approval. The Committee of Creditors (COC) had approved the final resolution plans with 100% voting in favor of the resolution plan.

## Facts

Shri. R. Venkatakrishnan, the Resolution Professional, filed an application under Section 31 of the Insolvency and Bankruptcy Code, 2016, for approval of the resolution plan for M/s. SMM Steels Re-Rolling Mills Private Limited and M/s. Paragon Steels Private Limited. Mrs. Fathima Abdul Khadar, acting in concert with Mr. Adbul Khadar, submitted the final resolution plan. The RP conducted the 14th meeting of the COC. The resolution applicant's plan was approved with 100% voting by the sole financial creditor. The resolution plan includes the continuing operations of the corporate debtors, meeting obligations to stakeholders, payment of insolvency resolution process costs, and repayment of debts to operational creditors. The land allotted to M/s. Paragon Steels Private

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the Resolution Professional should be approved under …

**Ratio:** Section 31 of the Insolvency and Bankruptcy Code, 2016, provides for the approval of a

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**Reasoning:** The Tribunal considered the resolution plan submitted by the RP, the approval of the plan

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**Interpretation:** Section 31 mandates that the Adjudicating Authority must be satisfied that the

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**Application:** The Tribunal, being satisfied with the compliance of the resolution plan with

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Shri.R. Venkatakri…
- **Respondents:** M/s. SMM Steels…

## Timeline

- **2018-06-28 — Voting on Resolution…**: Voting on the Resolution Plans…
- **2018-07-24 — Order Del…**: Order delivered by the NCLT…

## 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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