# In the matter of Rave Scans Pvt. Ltd. (IB)-01-(PB)-2017

> NCLT judgment dated 2018-10-17. Citation: TCN-2018-NCLT-00541. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Rave Scans Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 17 Oct 2018
- **Citation:** TCN-2018-NCLT-00541
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rave-scans-pvt-ltd-ib-01-pb-2017-32f765a7

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Rave Scans Pvt. Ltd. initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. Several applications (CAs) were filed, including those for approval of the resolution plan, exclusion of time consumed in litigation from the CIRP period, and objections to the resolution plan. The Committee of Creditors (CoC) repeatedly rejected resolution plans, leading to interventions by the NCLT. The primary contention revolves around the rejection of resolution plans despite offers exceeding the liquidation value and objections raised by Hero Fincorp Ltd., a member of the CoC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Rave Scans Pvt. Ltd. was initiated on 25.01.2017. Several resolution plans were submitted, but the Committee of Creditors (CoC) rejected them multiple times. Mr. Rahul Jain, a resolution applicant, submitted a plan offering Rs. 51 crores, exceeding the liquidation value of Rs. 33-36 crores. Hero Fincorp Ltd., a member of the CoC, consistently objected to the resolution plans, raising concerns about valuation and distribution of settlement amounts. The NCLT intervened, directing the CoC to reconsider the plans and requesting explanations from Indian Overseas Bank (IOB) regarding their voting decisions. The 270-day CIRP period expired on 21.02.2018. Mr. Rahul Jain revised his resolution plan, increasing the offer to

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mr. Rahul Jain should be approved, considering the …

**Ratio:** The Adjudicating Authority (NCLT) has the power to approve a resolution plan if it meets

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**Reasoning:** The NCLT found that the resolution plan submitted by Mr. Rahul Jain met the requirements

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

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**Application:** In this case, the NCLT applied the ratio by approving the resolution plan

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## Parties

- **Judges:** CHIEF JUSTICE…; S. K. MOH…
- **Respondents:** RAVE SCANS PVT.…; Tata Capital…

## Timeline

- **2017-01-25 — CIRP Commen…**: Petition was admitted and…
- **2017-07-24 — Extension of CI…**: Adjudicating Authority-NCLT…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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