# In the matter of Sri Murugarajendra Oil Industry Pvt. Ltd. I.A. No. 84-2020 in C.P. (IB) No. 124-BB-2019

> NCLT judgment dated 2020-02-10. Citation: TCN-2020-NCLT-02029. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Sri…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-murugarajendra-oil-industry-pvt-ltd-ia-no-84-2020-in-cp-ib-no-124-bb-2019-4044f440

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Sri Murugarajendra Oil Industry Private Limited following an application by R. Sathyanarayana, Proprietor ('Petitioner/Operational Creditor') under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the application on June 4, 2019, and appointed Mr. H.R. Shivaprasad as the Interim Resolution Professional (IRP). Subsequently, Mr. Hari Babu Thota was appointed as the Resolution Professional (RP). The RP invited Expression of Interest (EoI) and received a resolution plan from M/s. Atrih Agri Growth Private Limited jointly with Mr. Hiten Somchand Ladhad, which was approved by the Committee of Creditors (CoC).

## Facts

R. Sathyanarayana, an operational creditor, initiated CIRP against Sri Murugarajendra Oil Industry Private Limited under Section 9 of the IBC. The NCLT admitted the application on June 4, 2019, and appointed an IRP, later replaced by Hari Babu Thota as RP. The RP made a public announcement on July 3, 2019, inviting claims from creditors. The CoC appointed Hari Babu Thota as the RP on July 30, 2019. The RP prepared an Information Memorandum and made it available to the CoC on September 6, 2019. The CoC approved the Evaluation Matrix on September 20, 2019, and invited Expression of Interest (EoI). Vyom Agro Acres LLP initially showed interest but later withdrew. The CoC approved an extension of the CIRP period on November 21, 2019. The RP received a resolution plan from

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s. Atrih Agri Growth Private Limited jointly with Mr. …

**Ratio:** Section 30(2) of the IBC mandates that a resolution plan must provide for the payment of

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan to ensure it meets the

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**Interpretation:** Section 30(2) sets out the mandatory requirements for a resolution plan to be

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**Application:** The Resolution Plan was found to comply with Section 30(2) as it provided for

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** R. Sathyana…
- **Respondents:** Murugarajendra…

## Timeline

- **2019-06-04 — Admission of Application…**: The Adjudicating Authority admitted the application under Section 9 of the IBC and…
- **2019-07-03 — Public Annou…**: The IRP made a Public Announcement in Form-A calling upon the Creditors of Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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