# 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-02026. The case involves Corporate Insolvency Resolution Process (CIRP) initiated against Sri…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02026
- **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-2019-71d3359f

## Summary

### Background

The case involves Corporate Insolvency Resolution Process (CIRP) initiated against Sri Murugarajendra Oil Industry Private Limited. The CIRP was initiated by R. Sathyanarayana, Proprietor ('Petitioner/Operational Creditor') under Section 9 of the I&B Code, 2016. The Adjudicating Authority admitted the CIRP 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 Committee of Creditors (CoC) approved a resolution plan submitted by Atrih Agri Growth Private Limited jointly with Mr. Hiten Somchand Ladhad. I.A. No.84 of 2020 was filed by the RP under Section 30(6) of the I&B Code, 2016, seeking acceptance of the resolution plan.

## Facts

R. Sathyanarayana, an operational creditor, initiated CIRP against Sri Murugarajendra Oil Industry Private Limited under Section 9 of the I&B Code. The CIRP was admitted on June 4, 2019. Mr. H.R. Shivaprasad was initially appointed as the IRP, later replaced by Mr. Hari Babu Thota as the RP. The RP made a public announcement on July 3, 2019, inviting claims from creditors. The CoC appointed registered valuers to determine the fair market value and liquidation value of the Corporate Debtor. The CoC approved the Evaluation Matrix and Criteria for Resolution Applicants. Vyom Agro Acres LLP initially showed interest but later withdrew. The CoC approved a resolution plan submitted by Atrih Agri Growth Private Limited jointly with Mr. Hiten Somchand Ladhad on January 29,

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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 31(1) of the IBC, 2016 states that if the Adjudicating Authority is satisfied

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan and found that it complied with

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a resolution plan

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan met the

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## Parties

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

## Timeline

- **2019-06-04 — Admission o…**: The Adjudicating Authority admitted the Corporate Insolvency Resolution Process (CIRP)…
- **2019-07-03 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement inviting claims from…

## 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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