# In the matter of Solidaire India Limited MA-390-2019 in CP-977-IB-CB-2018

> NCLT judgment dated 2019-07-19. Citation: TCN-2019-NCLT-02402. The case pertains to an MA filed by the Resolution Professional/Applicant seeking approval of…

- **Court:** NCLT
- **Order date:** 19 Jul 2019
- **Citation:** TCN-2019-NCLT-02402
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solidaire-india-limited-ma-390-2019-in-cp-977-ib-cb-2018-01ac4c01

## Summary

### Background

The case pertains to an MA filed by the Resolution Professional/Applicant seeking approval of the Resolution Plan, which was already approved by the Committee of Creditors (CoC) in its 5th meeting held on 17.04.2019. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 26.10.2018, following which the CoC was constituted, and claims were collated. The Resolution Professional (RP) determined the liquidation value at ₹6,10,77,265 based on the valuation provided by two registered valuers. The RP also determined the value of the land lying in the possession of the Corporate Debtor at ₹31,710, treating the fees paid towards assignment as the value of the land. The machinery and equipment were valued at ₹3.75 lakhs, and the building

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Solidaire India Limited on 26.10.2018. The Committee of Creditors (CoC) was formed, and claims were collated. The Resolution Professional (RP) determined the liquidation value to be ₹6,10,77,265. The RP valued the land at ₹31,710, machinery and equipment at ₹3.75 lakhs, and the building at ₹57.06 Lakhs. In the 2nd CoC meeting on 21.01.2019, a draft Information Memorandum was approved, stipulating that the net worth of the prospective Resolution Applicant should not be less than ₹10 crores as of 31.03.2018. The Resolution Applicant proposed to infuse ₹12.56 crores towards resolution process costs and payment of creditors. The CoC approved the Resolution Plan with 79.35% voting share on 17.04.2019.

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## Issues and analysis

### Issue 1: Whether the Resolution Plan, as approved by the CoC, should be approved by the Adjudicating …

**Ratio:** The Adjudicating Authority should approve a Resolution Plan if it complies with the

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**Reasoning:** The court considered the fact that the CoC had approved the Resolution Plan with a voting

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**Interpretation:** The IBC provides a framework for the resolution of corporate insolvency, and

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**Application:** In this case, the court found that the Resolution Plan complied with the

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## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** J. Kart…
- **Respondents:** Solidaire India…
- **Advocates:** Shri. P.S…; Shri. Jayesh B.…; +2 more

## Timeline

- **2018-10-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-01-21 — CoC Meet…**: 2nd meeting of the CoC held, draft…

## 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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