# In the matter of VS Lignite Power Private Limited IA No. 70,77 & 90-2021 in CP (IB) No. 563-9-HDB-2019

> NCLT judgment dated 2021-03-16. Citation: TCN-2021-NCLT-02687. The case involves an application (IA No. 70/2021) filed under Section 30(6) read with Section…

- **Court:** NCLT
- **Order date:** 16 Mar 2021
- **Citation:** TCN-2021-NCLT-02687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vs-lignite-power-private-limited-ia-no-7077-90-2021-in-cp-ib-no-563-9-hdb-2019-9389a151

## Summary

### Background

The case involves an application (IA No. 70/2021) filed under Section 30(6) read with Section 31(1) of the Insolvency and Bankruptcy Code, 2016, seeking approval of a resolution plan for the Corporate Debtor, V S Lignite Power Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated by the NCLT Hyderabad bench on 18.09.2019. Dr. Govindarajula Venkata Narasimha Rao was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). The CoC received three resolution plans and ultimately approved the plan submitted by Sherisha Technologies Pvt. Ltd. The application was filed to get the resolution plan approved by the NCLT.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against V S Lignite Power Private Limited. Dr. Govindarajula Venkata Narasimha Rao was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) comprised several financial creditors, including Prudent ARC Limited, Housing and Urban Development Corporation Ltd. (HUDCO), State Bank of India, REC Limited, IFCI Limited, Axis Bank Ltd., and Bank of Baroda. The CoC received three resolution plans from Sherisha Technologies Pvt. Ltd., Consortium of Manikaran Power Limited & ACB (India) Power Pvt. Ltd., and Ilabs Hyderabad Technology Centre. The CoC approved the resolution plan submitted by Sherisha Technologies Pvt. Ltd. with a 100% voting share. The total consideration under the

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Sherisha Technologies Pvt. Ltd. complies with the …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38,

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**Reasoning:** The NCLT reviewed the resolution plan and found that it provides for the payment of

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**Interpretation:** The resolution plan must adhere to the statutory requirements outlined in the

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**Application:** The NCLT applied the provisions of Section 30(2) and Regulation 38 to the

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Appellants:** Refex Industries…
- **Respondents:** VS Lignite Power…; VS Lignite Power…

## Timeline

- **2019-09-18 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by…
- **2019-10-18 — RP Appoin…**: Dr. Govindarajula Venkata Narasimha Rao was confirmed as the Resolution Professional (RP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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