# In the matter of Richa Industries Ltd.

> NCLT judgment dated 2025-06-11. Citation: TCN-2025-NCLT-00911. Saariga Construction Pvt. Ltd. filed an application under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 11 Jun 2025
- **Citation:** TCN-2025-NCLT-00911
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/richa-industries-ltd-914dd9aa

## Summary

### Background

Saariga Construction Pvt. Ltd. filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to be declared a successful resolution applicant for Richa Industries Limited. Their resolution plan was considered but rejected by the Committee of Creditors (CoC).

## Facts

Saariga Construction Pvt. Ltd. submitted a resolution plan for Richa Industries Limited.

The resolution plan was considered in the 13th and 14th meetings of the Committee of Creditors (CoC) but was rejected.

The Resolution Professional was directed to reinitiate the process by republishing Form G and inviting fresh expression of interest.

The resolution plan was put to vote in the 38th and 39th meetings of the CoC with voting lines open from 04.09.2023 to 22.09.2023.

52.02% of the CoC members voted in favor of the resolution plan, 0.08% voted against it, and 47.90% abstained from voting.

The Applicant relies upon Regulation 25(4) of the CIRP Regulations.

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## Issues and analysis

### Issue 1: Whether abstentions should be excluded from the computation of the voting threshold under Section …

**Ratio:** Abstentions cannot be disregarded or excluded from the computation of the voting

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**Reasoning:** Section 30(4) of the IBC mandates that the Committee of Creditors (CoC) may approve a

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**Interpretation:** The entire voting share of all financial creditors forming the CoC — regardless

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**Application:** In the present case, the resolution plan received 52.02% votes in favour, 0.08%

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## Parties

- **Judges:** Harnam Singh…; SHISHIR A…
- **Appellants:** Saariga Constructi…
- **Respondents:** Richa Industries…; Arvind…
- **Other parties:** Tata Blue Scope…
- **Advocates:** Aalok J…; APS Ma…; +4 more

## Timeline

- **2025-06-11 — Order deliv…**: The order was delivered…

## 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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