# In the matter of Suraj Fabrics Industries Limited I.A.(IB) No. 601-KB-2020 in C.P. (IB) No. 1635-KB-2018

> NCLT judgment dated 2020-08-12. Citation: TCN-2020-NCLT-00855. The case involves an application for the approval of a resolution plan for Suraj Fabrics…

- **Court:** NCLT
- **Order date:** 12 Aug 2020
- **Citation:** TCN-2020-NCLT-00855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suraj-fabrics-industries-limited-iaib-no-601-kb-2020-in-cp-ib-no-1635-kb-2018-09052d4d

## Summary

### Background

The case involves an application for the 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, and Mr. Santosh Choraria was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted and held several meetings to evaluate resolution plans. The resolution plan of M/s. Sponge Sales India Private Limited was approved by the CoC with 100% voting

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Suraj Fabrics Industries Limited. Santosh Choraria was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted on 24.07.2019 and held 11 meetings. Public notice was issued on 10.09.2019. The CoC approved the Evaluation Matrix (EM) and Request for Resolution Plan (RFRP) documents on 25.09.2019. The RP was permitted to publish the Revised Invitation of Expression of Interest (Eol) on 03.10.2019, and it was published on 05.10.2019. Five EOIs were received by 25.10.2019, but only two applicants were eligible. Two Resolution Plans were received and discussed in the 8th CoC meeting on 24.01.2020. The resolution applicants were asked to modify the plans.

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## Issues and analysis

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

**Ratio:** The resolution plan must comply with the provisions of Section 30(6) and Section 31 of

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**Reasoning:** The court considered the submissions of the Resolution Professional and the approval of

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, provides a framework for the

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**Application:** The court found that the resolution plan submitted by M/s. Sponge Sales (India)

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## Parties

- **Judges:** Jinan…
- **Respondents:** Suraj Fabrics…

## 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)

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