# In the matter of Vardhman Chemtech Limited CA No. 490-2019 & lA No.42-2020 in CP (lB) No. 2-Chd-CHD-2018

> NCLT judgment dated 2021-01-12. Citation: TCN-2021-NCLT-03317. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.…

- **Court:** NCLT
- **Order date:** 12 Jan 2021
- **Citation:** TCN-2021-NCLT-03317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vardhman-chemtech-limited-ca-no-490-2019-la-no42-2020-in-cp-lb-no-2-chd-chd-2018-06107a7b

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Vardhman Chemtech Limited, with Allahabad Bank as the Financial Creditor. The insolvency petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on 25.09.2018. The Committee of Creditors (CoC) was formed, consisting of Allahabad Bank, State Bank of India, State Bank of Patiala, State Bank of Hyderabad, and IDBI Bank. The Resolution Professional (RP) was appointed, and a resolution plan was submitted by M/s. DPB Antibiotics Private Limited. The RP sought approval of the resolution plan under Section 31(1) of the Code.

## Facts

Allahabad Bank filed an insolvency petition against M/s. Vardhman Chemtech Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 25.09.2018, initiating the CIRP. Mr. Manoj Sehgal was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement inviting claims from creditors. The CoC was constituted with Allahabad Bank, State Bank of India, State Bank of Patiala, State Bank of Hyderabad, and IDBI Bank as secured Financial Creditors. The IRP appointed two valuers to determine the liquidation value of the corporate debtor. The CoC approved the appointment of the IRP as the Resolution Professional (RP). The CoC approved the Eligibility Criteria and Evaluation Matrix for resolution applicants.

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## Issues and analysis

### Issue 1: Whether the resolution plan complies with the provisions of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements

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**Reasoning:** The Adjudicating Authority examined the resolution plan to ensure that it complied with

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**Interpretation:** Section 30(2) of the Code sets out the mandatory requirements for a resolution

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**Application:** In this case, the Adjudicating Authority found that the resolution plan

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Allahabad…
- **Respondents:** Vardhman Chemtech…; M/s. Vardhman…
- **Advocates:** Pooja Ma…; Yogesh P…

## Timeline

- **2018-09-25 — CIRP Init…**: CIRP initiated against M/s.…
- **2018-09-25 — Moratorium…**: Moratorium imposed under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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