# 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-02407. 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-02407
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solidaire-india-limited-ma-390-2019-in-cp-977-ib-cb-2018-a6deb049

## Summary

### Background

The case pertains to an MA filed by the Resolution Professional/Applicant seeking approval of the Resolution Plan already approved by the 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, after which the CoC was constituted, and claims were collated. The RP determined the liquidation value at ₹6,10,77,265 based on the valuation given by two registered Valuers. The RP also determined the value of the land lying in the possession of the Corporate Debtor at ₹31,710. In the 2nd meeting of the CoC held on 21.01.2019, a draft Information Memorandum was placed and approved, disclosing the net worth of the prospective Resolution Applicant as on 31.03.2018 should not be less

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Solidaire India Limited on 26.10.2018. The Resolution Professional (RP) determined the liquidation value at ₹6,10,77,265. The RP valued the land of the Corporate Debtor at ₹31,710, machinery and equipment at ₹3.75 lakhs, and the building at ₹57.06 Lakhs. The draft Information Memorandum disclosed that the net worth of the prospective Resolution Applicant should not be less than ₹10 Crores as of 31.03.2018. The Resolution Plan proposed to infuse ₹12.56 crores towards resolution process costs and payment of Secured Creditors/Financial Creditors. The CoC approved the Resolution Plan with 79.35% voting share. The Applicant Bank abstained from voting. The Resolution Applicant has deposited ₹5 crores

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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 the Resolution Plan if it complies with the

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**Reasoning:** The CoC, having felt that the plan is feasible and viable, approved it with a voting

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

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**Application:** In this case, the CoC approved the Resolution Plan with a significant majority.

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## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** J. Kart…
- **Respondents:** Solidaire India…

## Timeline

- **2018-10-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-01-21 — CoC 2nd M…**: In the 2nd meeting of the CoC, the RP placed a draft Information Memorandum, which was…

## 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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