# In the matter of Ved Cellulose Ltd.

> NCLT judgment dated 2017-10-04. Citation: TCN-2017-NCLT-00325. The case involves a corporate insolvency resolution process initiated under Section 7 of the…

- **Court:** NCLT
- **Order date:** 4 Oct 2017
- **Citation:** TCN-2017-NCLT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ved-cellulose-ltd-c239dd53

## Summary

### Background

The case involves a corporate insolvency resolution process initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. Reliance Commercial Finance Ltd. filed the petition against Ved Cellulose Ltd. The Interim Resolution Professional (IRP) submitted a report on the corporate insolvency resolution process along with a Resolution Plan. Objections were raised by the Bank of India, a financial creditor, regarding irregularities in the public announcement and the constitution of the Committee of Creditors (CoC). The Bank of India was not included in the CoC, and the IRP's tenure was questioned.

## Facts

Reliance Commercial Finance Ltd. initiated a corporate insolvency resolution process against Ved Cellulose Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Interim Resolution Professional (IRP) filed a report and a Resolution Plan. The Bank of India, a financial creditor, raised objections, claiming irregularities in the public announcement and the constitution of the Committee of Creditors (CoC). The Bank of India argued that the IRP failed to include them in the CoC and that the public announcement was not made within the required timeframe. The IRP's tenure was also questioned, with the Bank of India arguing that it had expired. The Corporate Debtor had proposed a resolution plan involving payment of defaulted amounts through post-dated cheques.

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## Issues and analysis

### Issue 1: Whether the Interim Resolution Professional (IRP) complied with the mandatory provisions of the …

**Ratio:** The Interim Resolution Professional is obligated to follow the procedures and timelines

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**Reasoning:** The court found that the IRP failed to make the public announcement within the prescribed

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**Interpretation:** The Insolvency and Bankruptcy Code mandates strict adherence to timelines and

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**Application:** In this case, the IRP's failure to make a timely public announcement and to

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Reliance Commercia…
- **Respondents:** Ved Cellulo…

## Timeline

- **2017-06-30 — Admission of Petition…**: The petition for corporate insolvency resolution process was admitted, and the Interim…
- **2017-07-30 — End of IRP Tenure…**: The Bank of India argued that the tenure of the IRP ended on this date, 30 days after his…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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