# In the matter of Sura Leathers Private Limited I.A. No. 113 of 2020 in C.P. (IB) No. 41-BB-2019

> NCLT judgment dated 2020-02-25. Citation: TCN-2020-NCLT-01825. The case pertains to I.A. No. 113 of 2020 in C.P. (IB) No. 41/BB/2019 filed by Mr. V.…

- **Court:** NCLT
- **Order date:** 25 Feb 2020
- **Citation:** TCN-2020-NCLT-01825
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sura-leathers-private-limited-ia-no-113-of-2020-in-cp-ib-no-41-bb-2019-20bca93e

## Summary

### Background

The case pertains to I.A. No. 113 of 2020 in C.P. (IB) No. 41/BB/2019 filed by Mr. V. Duraisamy, the Resolution Professional (RP) of M/s. Sura Leathers Private Limited, seeking liquidation orders under Section 33(2) and 34(1) of the Insolvency and Bankruptcy Code (I&B Code). The initial Company Petition bearing C.P.(IB) No.41/BB/2019 was filed by M/s Vansun Intermediates Private Limited under Section 9 of the IBC, 2016 for initiating CIRP process in respect of the Corporate Debtor namely M/s Sura Leather Private Limited. The Adjudicating Authority admitted the petition on 31.05.2019 and appointed Mr. Duraisamy as the Interim Resolution Professional (IRP). The IRP then made a public announcement and constituted a Committee of Creditors (CoC).

## Facts

M/s. Vansun Intermediates Private Limited initiated the Corporate Insolvency Resolution Process (CIRP) against M/s. Sura Leathers Private Limited under Section 9 of the IBC, 2016. The Adjudicating Authority admitted the petition on 31.05.2019 and appointed Mr. Duraisamy as the Interim Resolution Professional (IRP). Mr. Duraisamy then made a public announcement and constituted a Committee of Creditors (CoC). The CoC consisted of State Bank of India as its sole member. Two resolution applicants, M/s. Vansun Intermediates Private Limited and M/s. Percept Leathers, submitted resolution plans. The CoC found the resolution plans to be unfeasible and lower than the liquidation value. The CoC also raised concerns about a condition in M/s. Vansun's plan involving the transfer

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## Issues and analysis

### Issue 1: Whether the resolution plans submitted by the …

**Ratio:** The Committee of Creditors (CoC) has the authority to evaluate the feasibility and

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**Reasoning:** The CoC found that the resolution plans submitted by M/s. Vansun Intermediates Private

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**Interpretation:** The CoC's decision to reject the resolution plans was based on its assessment

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**Application:** In this case, the CoC's assessment of the resolution plans led it to conclude

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s Vansun…
- **Respondents:** M/s Sura Leathers…

## Timeline

- **2019-05-31 — Admission of…**: The Adjudicating Authority admitted the petition filed by M/s. Vansun Intermediates…
- **2019-05-31 — Appointment…**: Mr. Duraisamy was appointed as the…

## 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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