# In the matter of Sitarganj Fibers Ltd. CA No. 398-2019 in CP.No(IB) 390-ALD-2018

> NCLT judgment dated 2020-02-07. Citation: TCN-2020-NCLT-02034. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLT-02034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sitarganj-fibers-ltd-ca-no-398-2019-in-cpnoib-390-ald-2018-053f1431

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Sitarganj Fibres Ltd. upon an application filed by the Corporate Debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). Punjab National Bank is the financial creditor. Mr. Sumit Shukla was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP conducted multiple Committee of Creditors (COC) meetings to discuss and approve a resolution plan. Babu Lal Patwari submitted a resolution plan, which was revised based on discussions with the COC. The RP sought approval from the Adjudicating Authority for the resolution plan.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sitarganj Fibres Ltd. Punjab National Bank is the financial creditor. Sumit Shukla was appointed as the IRP and later confirmed as RP. The RP conducted several COC meetings. An application was filed by RP for extension of CIRP process by 90 days, approved on 17/9/2019. Form G was published in Hindustan Times and Business Standard. Babu Lal Patwari submitted a resolution plan. The COC approved the resolution plan with 100% vote, subject to submission of an addendum. The RP issued a Letter of Intent (LOI) to Babu Lal Patwari. Babu Lal Patwari submitted an addendum to the revised resolution plan and a bank draft for Rs. 13,200,000, which is 10% of the proposed resolution cost. The Resolution

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Babu Lal Patwari complies with the requirements of Section …

**Ratio:** Section 30(2) of the IBC specifies the conditions that a resolution plan must meet to be

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**Reasoning:** The Adjudicating Authority examined the resolution plan and found it to be in compliance

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**Interpretation:** Section 30(2) is interpreted as setting the minimum standards for a resolution

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**Application:** The resolution plan submitted by Babu Lal Patwari was found to provide for the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Punjab National…
- **Respondents:** Sitarganj Fibres…
- **Advocates:** Sumit S…

## Timeline

- **2018-01-01 — CP.NO(IB) 390/…**: Case filed under Section 30 (6) of…
- **2019-04-09 — Initiation…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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