# In the matter of V.M. Confectionery Limited  C.P. (IB) No. 149-BB-2017

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01845. M/s. V.M. Confectionery Limited, the Corporate Applicant, filed C.P. (IB) No.149/BB/2017 under…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01845
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vm-confectionery-limited-cp-ib-no-149-bb-2017-aa250af1

## Summary

### Background

M/s. V.M. Confectionery Limited, the Corporate Applicant, filed C.P. (IB) No.149/BB/2017 under Section 4(b) of the Sick Industrial Companies (Special Provisions) Act, 2003, which was inserted in the Eighth Schedule of the I&B Code, 2016. The application was filed against the Registrar of Companies, Karnataka, ESI Corporation, and PF authorities, seeking enforcement of a sanctioned scheme dated 21.06.2006 approved by the Board for Industrial and Financial Reconstruction (BIFR). The applicant sought directions for the respondents to comply with clauses of the sanctioned scheme related to ESI dues, PF dues, and exemptions from Company Law Board provisions. The BIFR had previously sanctioned a rehabilitation scheme for the Corporate Applicant, which the applicant

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## Facts

M/s. V.M. Confectionery Limited, the Corporate Applicant, filed an application seeking enforcement of a sanctioned scheme approved by the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act (SICA). The Corporate Applicant's net worth eroded by 31.03.1994, leading to a reference to BIFR, registered as Case No.34/1995. BIFR declared the Corporate Applicant a sick industrial company on 17.07.1995 and appointed Canara Bank as the Operating Agency. A rehabilitation scheme was sanctioned on 16.02.1996, but the Corporate Applicant failed to implement it, leading BIFR to declare the scheme 'failed' on 20.07.2000. A modified scheme was sanctioned on 21.06.2016. The Corporate Applicant alleged that the Registrar of Companies (ROC),

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## Issues and analysis

### Issue 1: Whether the revival scheme sanctioned by the BIFR under SICA can be deemed to be an approved …

**Ratio:** Section 4(b) of the SICA Repeal Act, 2003, as amended by the I&B Code, 2016, and

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**Reasoning:** The court relied on the provisions of the SICA Repeal Act and the I&B Code, which

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**Interpretation:** The legal issue revolves around the interpretation of the SICA Repeal Act and

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**Application:** The court applied the ratio to the facts of the case, noting that the revival

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Respondents:** M/s. V.M.…; The Registrar of…

## Timeline

- **1984-03-30 — Company Incor…**: M/s. V.M. Confectionery Limited…
- **1994-03-31 — Net Worth E…**: Corporate Applicant's…

## 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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