# In the matter of SSMP Industries Limited CA. 185,208,292 & 338-C-III-ND-2019 in (IB)-495(ND)-2017

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02198. The case involves an application under Section 33(1)(a) and 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ssmp-industries-limited-ca-185208292-338-c-iii-nd-2019-in-ib-495nd-2017-112cc9e6

## Summary

### Background

The case involves an application under Section 33(1)(a) and 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor, SSMP Industries Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on 27.08.2018. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made to invite claims. The Committee of Creditors (CoC) was constituted on 02.10.2018. The CIRP period was extended by 30 days, ending on 24.03.2019. An invitation for Expression of Interest (EoI) was made, and only one prospective resolution applicant, an ex-Director of the Corporate Debtor, was finalized. The CoC rejected the resolution plan based on commercial considerations.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for SSMP Industries Limited was initiated on 27.08.2018. The Committee of Creditors (CoC) included Oriental Bank of Commerce (99.1% voting share) and Kotak Mahindra Prime Limited (0.90% voting share). Seven CoC meetings were held between 08.10.2018 and 15.03.2019. The CIRP period was extended to 24.03.2019. An invitation for Expression of Interest (EoI) resulted in only one prospective resolution applicant, an ex-Director of the Corporate Debtor. The CoC rejected the resolution plan on 14.02.2019 due to concerns about the amount offered, commercial viability, and inconsistencies. The fair value of the assets was Rs. 157.07 lakhs, and the liquidation value was Rs. 150.63 lakhs. The admitted claim was Rs. 1839.68 lakhs

…

## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the prospective resolution applicant was rightly rejected …

**Ratio:** The CoC has the authority to reject a

…

**Reasoning:** The CoC rejected the resolution plan due to concerns about the amount offered, commercial

…

**Interpretation:** The CoC's decision-making power is paramount in the resolution process, and the

…

**Application:** The CoC's rejection of the resolution plan was justified based on the

…

## Parties

- **Judges:** R. VARADH…
- **Appellants:** Mohan Lal…
- **Respondents:** SSMP INDUSTRIES…; M/s SSMP Industrie…

## Timeline

- **2018-08-27 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2018-10-02 — CoC Consti…**: Committee of Creditors…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/ssmp-industries-limited-ca-185208292-338-c-iii-nd-2019-in-ib-495nd-2017-112cc9e6