# In the matter of The National Sewing Thread Company Limited IA(IBC)-1032(CHE)-2021 in IBA-622-2019

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00251. The case involves an application (IA(IBC)/1032(CHE)/2021) moved by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/the-national-sewing-thread-company-limited-iaibc-1032che-2021-in-iba-622-2019-825b8eaa

## Summary

### Background

The case involves an application (IA(IBC)/1032(CHE)/2021) moved by the Resolution Professional (Arunava Sikdar) of the Corporate Debtor, M/s. The National Sewing Thread Company Limited, seeking approval of the Resolution Plan under Section 30(6) & 31 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 29.08.2019, following an application filed under Section 7 of IBC, 2016 by a Financial Creditor, M/s. Alchemist Asset Reconstruction Company Limited. Initially, Mr. V. Duraisamy was appointed as the Interim Resolution Professional (IRP), who then constituted the Committee of Creditors (CoC). Due to the Covid-19 pandemic and subsequent lockdowns, the Resolution Applicants faced

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. The National Sewing Thread Company Limited on 29.08.2019, by Alchemist Asset Reconstruction Company Limited under Section 7 of the IBC, 2016. Mr. V. Duraisamy was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Arunava Sikdar. Public announcements were made on 01.09.2019, and a Committee of Creditors (CoC) was constituted. The CoC conducted 19 meetings. Due to the Covid-19 pandemic, the submission of the Resolution Plan was delayed, leading to the issuance of a fresh Expression of Interest (EoI) on 08.07.2020. The last date for submission of EoI was fixed as 05.09.2020. The CoC approved the Resolution Plan submitted by Mr. B. Venkatesan and Mr. B.

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant complies with the requirements of …

**Ratio:** The Resolution Plan must comply with the mandatory requirements of Section 30(2) of the

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**Reasoning:** The Adjudicating Authority is required to examine the Resolution Plan to ensure that it

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**Interpretation:** Section 30(2) of the IBC, 2016, sets out the mandatory requirements that a

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** ArunavaS…
- **Respondents:** The National…

## Timeline

- **2019-08-29 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-09-01 — Public Annou…**: Public announcement made in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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