# 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-02183. 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-02183
- **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-d1c63895

## 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. The CoC rejected the resolution plan due to commercial considerations.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for SSMP Industries Limited 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. The CIRP period was extended and ended on 24.03.2019. An invitation for Expression of Interest (EoI) was made on 19.11.2018. The CoC rejected the resolution plan on 14.02.2019 due to concerns about the amount offered, commercial viability, and inconsistencies in the plan. The fair value of the assets was stated as Rs. 157.07 lakhs, and the liquidation value was stated as Rs. 150.63 lakhs, while the admitted claim was Rs. 1839.68 lakhs as of 27.08.2018. Two applications were filed by

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted for the Corporate Debtor was rightly rejected by the …

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

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

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**Interpretation:** The IBC grants the CoC the power to make decisions based on commercial

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**Application:** The CoC's concerns about the resolution plan were valid, justifying its

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## 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)

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