# In the matter of Recorders and Medicare Systems Pvt. Ltd. CA No. 84-2018 In CP (IB) No. 07-Chd-Hry-2017

> NCLT judgment dated 2018-09-14. Citation: TCN-2018-NCLT-00758. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 14 Sept 2018
- **Citation:** TCN-2018-NCLT-00758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/recorders-and-medicare-systems-pvt-ltd-ca-no-84-2018-in-cp-ib-no-07-chd-hry-2017-595d38c4

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Recorders and Medicare Systems Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted, a moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. The IRP constituted a Committee of Creditors (COC). Subsequently, the IRP was replaced by another Resolution Professional (RP). An application was filed for extension of the CIRP period. The RP filed an application under Section 31 of the Code for approval of the resolution plan submitted by RMS Employees Welfare Trust. The promoter director's resolution plan was challenged due to disqualifications under the amended Code. The employees of the corporate debtor formed a

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## Facts

Recorders and Medicare Systems Pvt. Ltd. faced Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. An Interim Resolution Professional (IRP), Mr. Purushottam Ram Singhania, was initially appointed but later replaced by Mr. Anil Goel. The Committee of Creditors (COC) was formed, including State Bank of India (SBI), HDFC Ltd., and ICICI Bank Ltd. The CIRP period was extended by 90 days. RMS Employees Welfare Trust, formed by the employees, submitted a resolution plan after the promoter director, Shri Suman Jolly, became ineligible due to the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017. The promoter director's challenge to the Ordinance was withdrawn. The COC approved the Trust's resolution plan with

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by RMS Employees Welfare Trust meets the requirements of …

**Ratio:** Section 31(1) of the Code states that if the Adjudicating Authority is satisfied that the

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**Reasoning:** The Adjudicating Authority considered the submissions of the authorized representative

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**Interpretation:** Section 31(1) provides the framework for the Adjudicating Authority to approve

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**Application:** In this case, the Adjudicating Authority was satisfied that the resolution plan

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** Recorders and…

## Timeline

- **2017-03-16 — Petition Ad…**: Petition filed by Recorders and…
- **2017-03-16 — Moratorium Dec…**: Moratorium under Section 14…

## 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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