# In the matter of Sanghvi Forging & Engineering Ltd. I.A. No 130 & 143 of 2021 in CP(IB) No. 197 of 2018

> NCLT judgment dated 2021-04-26. Citation: TCN-2021-NCLT-02293. The case involves Corporate Insolvency Resolution Process (CIRP) initiated against Sanghvi…

- **Court:** NCLT
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-NCLT-02293
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanghvi-forging-engineering-ltd-ia-no-130-143-of-2021-in-cpib-no-197-of-2018-e34a131c

## Summary

### Background

The case involves Corporate Insolvency Resolution Process (CIRP) initiated against Sanghvi Forging and Engineering Limited. Bank of Baroda, a financial creditor, filed CP(IB) No. 197 of 2018 under Section 7 of the Insolvency and Bankruptcy Code (IB Code). The CIRP was admitted on 2019-08-30, and Mr. Chandra Prakash Jain was appointed as Interim Resolution Professional (IRP). NCLAT granted a stay on the CIRP on 2019-09-20, which was later vacated on 2019-12-02. The IRP made a fresh paper publication on 2020-01-13. The Committee of Creditors (CoC) was formed, and in its 3rd meeting on 2020-02-17, it decided to continue with IRP as RP. The period from 2019-09-20 to 2020-01-04 was excluded by the Adjudicating Authority vide its order dated 2020-03-13. Due to the nationwide

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sanghvi Forging and Engineering Limited based on an application by Bank of Baroda under Section 7 of the IB Code. The CIRP was admitted on 2019-08-30. An initial stay by NCLAT was later vacated. The Committee of Creditors (CoC) was formed, and the IRP was continued as RP. The CIRP faced delays due to a nationwide lockdown. The RP received five Expressions of Interest (Eol) and set a deadline for Resolution Plan submissions. Four Resolution Plans were received from Bharat Forge Limited, Rimjhim Ispat Limited, Shree Yash Stainless Steel Pvt. Limited, and Rajputana Stainless Limited. The CoC approved the plan submitted by Bharat Forge Limited with 100% majority voting share. The Resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Bharat Forge Limited meets the requirements of the …

**Ratio:** The Resolution Plan must comply with Section 30(2) and 30(4) of the IB Code, as well as

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**Reasoning:** The Adjudicating Authority found that the CoC had approved the plan with 100% voting

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**Interpretation:** The legal issue revolves around ensuring that the Resolution Plan adheres to

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**Application:** The Adjudicating Authority applied the ratio by examining the Resolution Plan

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Vikram Sa…
- **Respondents:** Sanghvi Forging…; Bank of B…
- **Advocates:** Raheel…; Saurabh So…; +9 more

## Timeline

- **2018-01-01 — CP(IB) No. 197 of 2018…**: CP(IB) No. 197 of 2018 was filed by Financial Creditor viz. Bank of Baroda, under section…
- **2019-08-30 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was admitted…

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