# In the matter of VBC Industries Ltd. IA No. 173-2019 in CP(IB)No. 302-7-HDB-2017

> NCLT judgment dated 2021-01-07. Citation: TCN-2021-NCLT-03374. The case pertains to IA No. 173/2019 filed in CP(IB)No.302/7/HDB/2018 under Section 30 of the…

- **Court:** NCLT
- **Order date:** 7 Jan 2021
- **Citation:** TCN-2021-NCLT-03374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vbc-industries-ltd-ia-no-173-2019-in-cpibno-302-7-hdb-2017-94805638

## Summary

### Background

The case pertains to IA No. 173/2019 filed in CP(IB)No.302/7/HDB/2018 under Section 30 of the IB Code, 2016, seeking approval of the Resolution Plan for M/s Kamini Metalliks Private Limited. The Corporate Debtor, VBC Industries Ltd, was admitted into CIRP on 2018-04-13. The Resolution Professional (RP) published an invitation for Expression of Interest (EOI) and received multiple proposals. The Committee of Creditors (CoC) analyzed the proposals and declared M/s. Kamini Metalliks Pvt Ltd as H1. The Resolution Applicant improved their offer to Rs. 98.15 Crores. The CoC approved the Resolution Plan with a 100% majority in its 15th meeting held on 2019-02-21.

## Facts

The Corporate Debtor, VBC Industries Ltd, was admitted into CIRP on 2018-04-13. Mr. CS Ahalada Roa Vummenathala was appointed as IRP, and later Mr. TSN Raja was appointed as RP on 2018-06-01. The RP published an invitation for EOI on 2018-09-12 and received 8 EOIs. Three resolution proposals were received from M/s. Raaga Mayuri Builders Pvt Ltd, M/s. Amaravathi Textiles Pvt Ltd & M/s. Kamini Metalliks Pvt Ltd. M/s. Raaga Mayuri Builders Pvt Ltd dropped out. The CoC declared M/s. Kamini Metalliks Pvt Ltd as H1. M/s. Kamini Metalliks Pvt Ltd improved their offer to Rs. 98.15 Crores from Rs. 81.5 Crores. The liquidation value of the Corporate Debtor's estate is Rs. 72 Crore. The Corporate Debtor owns investments valued at Rs. 27 crores, mainly in M/s. Konaseema Gas

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant meets the requirements of Section …

**Ratio:** Section 30(2) of the I&B Code, 2016, specifies the requirements that a resolution

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**Reasoning:** The Adjudicating Authority perused the Resolution Plan and observed that it provides for

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**Interpretation:** Section 30(2) is interpreted to ensure that the resolution plan adequately

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**Application:** The Adjudicating Authority applied the requirements of Section 30(2) to the

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** M/s. VBC Industrie…

## Timeline

- **2018-04-13 — CIRP Admi…**: Corporate Debtor…
- **2018-06-01 — RP Appoin…**: Mr. TSN Raja appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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