# In the matter of Tirupati Jute Industries Limited CA(IB) Nos.972-KB-2018,974-KB-2018, 1013-KB-2018, 08-KB-2019, 24-KB-2019 & 83-KB-2019 IN CP(IB) No. 508-KB-2018

> NCLT judgment dated 2019-02-13. Citation: TCN-2019-NCLT-04867. The Small Industries Development Bank of India, as a financial creditor, initiated Corporate…

- **Court:** NCLT
- **Order date:** 13 Feb 2019
- **Citation:** TCN-2019-NCLT-04867
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tirupati-jute-industries-limited-caib-nos972-kb-2018974-kb-2018-1013-kb-2018-08-184f15a0

## Summary

### Background

The Small Industries Development Bank of India, as a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Tirupati Jute Industries Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a default of Rs. 7,18,21,128/-. The NCLT admitted the corporate debtor into CIRP on 2018-01-12 and appointed Mr. Pinaki Sircar as the Interim Resolution Professional (IRP). The IRP formed a Committee of Creditors (CoC) comprising Federal Bank Ltd., Small Industries Development Bank of India, and Abhinandan Holdings Private Ltd. The CoC approved a resolution plan submitted by K.L. Jute Products Pvt. Ltd. with a 97.25% voting share. Objections were raised by other resolution applicants and workers of the corporate

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## Facts

Small Industries Development Bank of India initiated CIRP against Tirupati Jute Industries Limited due to a default of Rs. 7,18,21,128/-. The CIRP was initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. The NCLT admitted the corporate debtor into CIRP on 2018-01-12. Mr. Pinaki Sircar was appointed as the IRP. The IRP formed a CoC consisting of Federal Bank Ltd. (75.18% voting share), Small Industries Development Bank of India (22.51%), and Abhinandan Holdings Private Ltd. (2.31%). The CoC approved a resolution plan submitted by K.L. Jute Products Pvt. Ltd. with 97.25% voting share. The RP received three resolution plans. The corporate debtor had a lease agreement with Daaksh Jute LLP, which was running the jute mill. The resolution plan submitted by

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by K.L. Jute Products Pvt. Ltd. complies with the …

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

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**Reasoning:** The NCLT found that the resolution plan submitted by K.L. Jute Products Pvt. Ltd. was

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**Interpretation:** Section 30(2) mandates that a resolution plan must be comprehensive and capable

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**Application:** In this case, the NCLT determined that the resolution plan's condition

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## Parties

- **Judges:** Madan B.…
- **Respondents:** Tirupati Jute…

## Timeline

- **2018-01-12 — Admission in…**: NCLT admitted Tirupati Jute Industries Limited into Corporate Insolvency Resolution…
- **2018-02-26 — 2nd CoC M…**: 2nd CoC meeting held; approval…

## Legal provisions

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

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