# In the matter of Vidharbha Iron & Steel Corporation Ltd. MA 849-2019 in CP No.1660-I&BC-MB-MAH-2017

> NCLT judgment dated 23 Aug 2019. Citation: TCN-2019-NCLT-01835. The case concerns an application filed by the Resolution Professional for the approval of a…

- **Court:** NCLT
- **Order date:** 23 Aug 2019
- **Citation:** TCN-2019-NCLT-01835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vidharbha-iron-steel-corporation-ltd-ma-849-2019-in-cp-no1660-ibc-mb-mah-2017-48bf56b8

## Summary

### Background

The case concerns an application filed by the Resolution Professional for the approval of a Resolution Plan for Vidarbha Iron & Steel Corporation Ltd. (VISCO), the Corporate Debtor. VISCO had initiated its own insolvency proceedings under Section 10 of the Insolvency and Bankruptcy Code, 2016, on November 27, 2017, which was admitted on March 12, 2018. Mr. Sunil G. Nanal was appointed as the Interim Resolution Professional (IRP) and subsequently confirmed as the Resolution Professional (RP). The core issue revolved around VISCO's role as a guarantor for financial loans obtained by its subsidiary, Facor Steel Limited, from various banks, including Bank of India and Indian Overseas Bank. The total financial debt amounted to approximately ₹118 Crores, while the

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## Facts

An application was filed on March 4, 2018, by the Learned Resolution Professional, Mr. Sunil G. Nanal, under Section 30(6) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 39(4) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) 2016, seeking approval of a Resolution Plan for Vidarbha Iron & Steel Corporation Ltd. (VISCO).

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## Issues and analysis

### Issue 1: Whether the Resolution Plan, as approved by the Committee of Creditors, meets the requirements for…

**Ratio:** The Adjudicating Authority, while respecting the commercial wisdom of the Committee of…

**Reasoning:** The court reasoned that while the Supreme Court's judgment in K. Sashidhar & Indian…

**Interpretation:** The court interpreted 'satisfaction' under Section 31(1) as a substantive…

**Application:** In this case, the Resolution Plan was approved by the CoC with a 90.21% vote.…

## Parties

- **Judges:** M.K. Sh…
- **Advocates:** Omkar Deva…; Shyam Ka…; +1 more

## Timeline

- **November 27, 2017 — Corporate Debtor files…**: Vidarbha Iron & Steel Corporation Limited…
- **March 12, 2018 — Petition ad…**: The petition filed by the Corporate Debtor is admitted, and Mr. Sunil G Nanal is…

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