# In the matter of Stesalit Ltd. CP (IB) No. 512-KB-2017

> NCLT judgment dated 2018-07-20. Citation: TCN-2018-NCLT-01107. The case pertains to a Company Petition (IB) No.512/KB/2017 filed by Busilink Associates…

- **Court:** NCLT
- **Order date:** 20 Jul 2018
- **Citation:** TCN-2018-NCLT-01107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stesalit-ltd-cp-ib-no-512-kb-2017-5a98cad8

## Summary

### Background

The case pertains to a Company Petition (IB) No.512/KB/2017 filed by Busilink Associates against Stesalit Limited under Section 9 of the Insolvency & Bankruptcy Code, 2016. The petition was initiated because the Corporate Debtor, Stesalit Limited, was unable to pay its dues. The Adjudicating Authority admitted the petition and initiated the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) was appointed, who later made a public announcement about the CIRP and called for Expression of Interest for a Resolution Plan. The Corporate Debtor had two Financial Creditors, 44 Operational Creditors, two government departments claiming tax dues, and 239 workmen and employees.

## Facts

Busilink Associates filed a petition against Stesalit Limited under Section 9 of the Insolvency & Bankruptcy Code, 2016, due to the Corporate Debtor's inability to pay dues. The Adjudicating Authority admitted the petition and initiated CIRP. Samir Kumar Bhattacharya was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and called for Expression of Interest for a Resolution Plan. The Corporate Debtor had two Financial Creditors, 44 Operational Creditors, two government departments claiming tax dues, and 239 workmen and employees. The RP received three proposals, including one from River Rail JV, Delhi, and ARC Finance Ltd., Kolkata. The CoC rejected ARC Finance Ltd.'s proposal. The RP submitted the Resolution Plan of River

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by River Rail JV meets the mandatory requirements as per …

**Ratio:** Section 30(2) of the I&B Code specifies the mandatory requirements for a Resolution

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

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**Interpretation:** Section 30(2) of the I&B Code sets out the criteria that a resolution plan

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**Application:** The Adjudicating Authority applied the requirements of Section 30(2) to the

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Busilink Associate…
- **Respondents:** Stesalit L…

## Timeline

- **2017-11-20 — Admission of…**: The Adjudicating Authority admitted the petition to start CIRP against the Corporate…
- **2017-12-05 — CoC Meet…**: The order of appointment of R.P. was later on confirmed by the CoC in their meeting dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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