# In the matter of Yashraaj Ethanoll Processing Pvt. Ltd. MA-394-2018 In CP No. 1070-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-07-13. Citation: TCN-2018-NCLT-01154. The case involves a resolution plan for Yashraaj Ethanoll Processing Pvt. Ltd., a corporate…

- **Court:** NCLT
- **Order date:** 13 Jul 2018
- **Citation:** TCN-2018-NCLT-01154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yashraaj-ethanoll-processing-pvt-ltd-ma-394-2018-in-cp-no-1070-ibc-nclt-mb-mah-2-5917ec50

## Summary

### Background

The case involves a resolution plan for Yashraaj Ethanoll Processing Pvt. Ltd., a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Phoenix Erectors Pvt. Ltd., a financial creditor, initiated the CIRP. The resolution professional submitted a resolution plan for approval. The corporate debtor held a license to manufacture Extra Neutral Alcohol (ENA) from raw material grain. The company faced financial difficulties, leading to insolvency proceedings. The Committee of Creditors (CoC) was formed, and several meetings were held to discuss the resolution plan and valuation reports. The resolution plan proposed by the resolution applicants involved infusion of funds and repayment to creditors.

## Facts

Phoenix Erectors Pvt. Ltd. initiated CIRP against Yashraaj Ethanoll Processing Pvt. Ltd. due to financial debt of ₹75 Lakhs. Yashraaj Ethanoll held a license to manufacture 45,000 liters of Extra Neutral Alcohol (ENA) per day. The company was declared NPA by Central Bank of India and Union Bank of India in 2011. The total debt outstanding was ₹82.57 Cr to financial creditors and ₹16.26 Cr to operational creditors. The Committee of Creditors (CoC) included representatives from Central Bank of India, Union Bank of India, Innoventive Industries Limited, and Phoenix Erectors. The CoC approved a resolution plan unanimously. The resolution plan proposed an upfront payment of ₹4 Crores to secured financial creditors within 30 days and subsequent payments within 180 and 360

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## Issues and analysis

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

**Ratio:** Section 30(6) of the IBC requires the Adjudicating Authority (NCLT) to approve a

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**Reasoning:** The NCLT examined the Resolution Plan to ensure it complied with Section 30(2), including

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**Interpretation:** Section 30(6) mandates a thorough review of the resolution plan to ensure it

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**Application:** The NCLT scrutinized the plan's provisions for payment to various creditors and

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Phoenix Erectors…
- **Respondents:** Yashraaj Ethanoll…

## Timeline

- **2017-07-20 — Public Annou…**: A public announcement was made…
- **2017-07-20 — Order admitting…**: Order dated 20.07.2017 admitting the petition submitted by Phoenix Erectors Private…

## 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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