# In the matter of Suraj Fabrics Industries Limited

> NCLT judgment dated 2020-08-12. Citation: TCN-2020-NCLT-00854. The case involves an application for approval of a resolution plan for Suraj Fabrics Industries…

- **Court:** NCLT
- **Order date:** 12 Aug 2020
- **Citation:** TCN-2020-NCLT-00854
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suraj-fabrics-industries-limited-b7dfefae

## Summary

### Background

The case involves an application for approval of a resolution plan for Suraj Fabrics Industries Limited, a corporate debtor, under Section 30(6), Section 31, and Section 60(5) of the Insolvency and Bankruptcy Code, 2016, along with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Suraj Fabrics Industries Limited following an order dated 1st July, 2019. Santosh Choraria was appointed as the Interim Resolution Professional (IRP) and later continued as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted on 24th July, 2019, and held 11 meetings. The RP received five Expressions of

…

## Facts

Suraj Fabrics Industries Limited faced Corporate Insolvency Resolution Process (CIRP) following an order on July 1, 2019. Santosh Choraria was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed on July 24, 2019, and convened eleven meetings. The RP issued a public notice on September 10, 2019. The CoC approved the Evaluation Matrix (EM) and Request for Resolution Plan (RFRP) documents on September 25, 2019. The RP was authorized to publish the Revised Invitation of Expression of Interest (Eol) on October 3, 2019, which was published on October 5, 2019. Five EOIs were received by October 25, 2019, with two applicants meeting the eligibility criteria. Two Resolution Plans were

…

## Issues and analysis

### Issue 1: Whether the resolution plan submitted by M/s. Sponge Sales (India) Private Limited for Suraj …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016 stipulates that if the

…

**Reasoning:** The Tribunal considered the fact that the resolution plan was approved by the CoC with

…

**Interpretation:** Section 31(1) provides the framework for the approval of a resolution plan by

…

**Application:** In this case, the Tribunal found that the resolution plan submitted by M/s.

…

## Parties

- **Judges:** Jinan…
- **Respondents:** Suraj Fabrics…
- **Advocates:** Rishav Ba…; Rahul A…; +1 more

## Timeline

- **2019-07-01 — CIRP Init…**: The Company petition was admitted vide order dated 1st July, 2019 by ordering CIRP as…
- **2019-07-01 — Appointment…**: Mr. Santosh Choraria…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/suraj-fabrics-industries-limited-b7dfefae