# In the matter of Unitech Transformers Pvt. Ltd. MA 1621-2018 in CP()IB)-1616(MB)-2017

> NCLT judgment dated 2019-05-06. Citation: TCN-2019-NCLT-03455. The case involves a resolution plan proposed by the Committee of Creditors (CoC) for Unitech…

- **Court:** NCLT
- **Order date:** 6 May 2019
- **Citation:** TCN-2019-NCLT-03455
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unitech-transformers-pvt-ltd-ma-1621-2018-in-cpib-1616mb-2017-ad8de257

## Summary

### Background

The case involves a resolution plan proposed by the Committee of Creditors (CoC) for Unitech Transformers Pvt. Ltd. The resolution plan was pending approval. A member of the CoC, Bharat Co-operative Bank (Mumbai) Ltd., expressed its intent for liquidation via a letter dated 2019-04-16, citing the failure of a prospective purchaser to submit required documents for loan sanctioning. The resolution plan, approved by the Committee of Creditors on 2018-12-08, aimed to sell factory premises. The letter from Bharat Co-operative Bank requested a fresh CoC meeting and submission of a resolution plan for liquidation, as the 270-day period had elapsed.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Unitech Transformers Pvt. Ltd. A resolution plan, approved by the Committee of Creditors (CoC) on 2018-12-08, involved the sale of the company's factory premises. Bharat Co-operative Bank (Mumbai) Ltd., a member of the CoC, sent a letter dated 2019-04-16 expressing its intent for liquidation, citing the failure of a prospective purchaser to provide necessary documents for loan approval. The 270-day period for the resolution process had expired on 2018-12-17. The court discussed the resolution plan and the letter, suggesting that the CoC reconsider the plan. A meeting of the CoC was scheduled for 2019-05-20. The matter was listed for further hearing on 2019-06-04. The Principal Borrower, Unitech

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## Issues and analysis

### Issue 1: Whether the resolution plan proposed by the …

**Ratio:** The approval of a resolution plan depends on its viability and the fulfillment of all

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**Reasoning:** The court is considering the resolution plan but has raised concerns due to the CoC

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**Interpretation:** The IBC mandates a time-bound resolution process, but also allows for

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**Application:** In this case, the court is assessing whether the proposed resolution plan is

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** VellurmadamharishG…
- **Respondents:** Unitech Transforme…

## Timeline

- **2018-12-08 — Resolution Plan…**: Resolution plan of corporate debtor…
- **2018-12-11 — MA Filed…**: This MA is filed on…

## 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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