# In the matter of Prashant Impex Pvt. Ltd. IA(IB)No. 681-KB-2020 in CP (IB) No. 122-KB-2019

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00576. The case involves an application filed by a Resolution Professional under Section 31 of the…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00576
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prashant-impex-pvt-ltd-iaibno-681-kb-2020-in-cp-ib-no-122-kb-2019-cf03ed22

## Summary

### Background

The case involves an application filed by a Resolution Professional under Section 31 of the Insolvency and Bankruptcy Code, 2016, seeking approval of a Resolution Plan for the Corporate Debtor, Prashant Impex Private Limited. The plan was approved by the Committee of Creditors (CoC) with 100% votes. Cobra Sentinal Private Limited, an Operational Creditor, had initiated Corporate Insolvency Resolution Process (CIRP) against Prashant Impex Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was admitted into CIRP on June 27, 2019, and Mahesh Chand Gupta was appointed as the Insolvency Resolution Professional. The Resolution Professional published notices to invite prospective Resolution Plans, but there was no response

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## Facts

Cobra Sentinal Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Prashant Impex Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. Prashant Impex Private Limited was admitted into CIRP on June 27, 2019, and Mahesh Chand Gupta was appointed as the Insolvency Resolution Professional. The Committee of Creditors (CoC) approved the Resolution Plan of Shiv Energy LLP with 100% votes. The Resolution Professional filed an application under Section 31 of the Insolvency and Bankruptcy Code, 2016, for approval of the Resolution Plan. The Resolution Professional also filed IA(IB) No.681/KB/2020 for exclusion of the lockdown period from the CIRP. The CoC approved the resolution plan of M/s. Shiv Energy LLP by 100% votes on

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Shiv Energy LLP should be approved under Section 31 of the …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016 provides for the approval of a

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**Reasoning:** The court inspected the Resolution Plan and found that it was in conformity with

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**Interpretation:** Section 31(1) mandates that if a resolution plan is approved by the CoC and

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**Application:** The CoC approved the Resolution Plan of Shiv Energy LLP with 100% voting share.

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## Parties

- **Judges:** Madan B.…; Harish Chander…
- **Appellants:** Cobra Sentinal…
- **Respondents:** Prashant Impex…
- **Advocates:** Shaunak…; SuparnaS…

## Timeline

- **2019-06-27 — Admission in…**: The Corporate Debtor, Prashant Impex Private Limited, was admitted into Corporate…
- **2019-07-26 — Appointment of…**: Mahesh Chand Gupta was appointed as the Insolvency Resolution Professional, confirmed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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