# In the matter of Anil Ltd.

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00769. The application was filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 10 Nov 2023
- **Citation:** TCN-2023-NCLT-00769
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anil-ltd-265edb0a

## Summary

### Background

The application was filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (IBC), by Mr. Amol Shripal Sheth, seeking to set aside the order dated 25.10.2018, which put Respondent No. 1 company into liquidation. The applicant also sought a direction for the Respondents to consider his settlement proposal. The applicant, a suspended board of director of Respondent No. 1 Company (Corporate Debtor), argued that the Tribunal has jurisdiction to decide whether the Committee of Creditors (CoC) considered his settlement proposal arbitrarily. Reliance Commercial Finance Limited had filed an insolvency petition, CP (IB) No. 66 of 2017, under Section 7 of IBC, which was admitted on 23.08.2017. A resolution plan submitted by Bluecraft Agro Pvt. Ltd. was rejected.

…

## Facts

Amol Shripal Sheth, the applicant and suspended board of director of the corporate debtor, filed an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to set aside the liquidation order dated 25.10.2018 and direct the respondents to consider his settlement proposal. Reliance Commercial Finance Limited had initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor under Section 7 of the IBC, which was admitted on 23.08.2017. During the CIRP, a resolution plan submitted by Bluecraft Agro Pvt. Ltd. was rejected. Subsequently, 80.89% of the Committee of Creditors (CoC) members voted for liquidation, and the corporate debtor was put into liquidation on 25.10.2018. The applicant claimed that his

…

## Issues and analysis

### Issue 1: Whether the Tribunal has the jurisdiction to decide if the CoC arbitrarily rejected the applicant's …

**Ratio:** The commercial wisdom of the CoC/SCC has been given paramount status without any judicial

…

**Reasoning:** The Tribunal reasoned that the settlement plan was rejected by the SCC with requisite

…

**Interpretation:** The interpretation is that the decision-making power regarding the acceptance

…

**Application:** In this case, the SCC rejected the applicant's settlement proposal twice.

…

## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Amol Shripa…
- **Respondents:** Anil…

## Timeline

- **2017-08-23 — CIRP Comm…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-04-28 — Resolution Plan…**: Last date of submitting plan and receipt of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anil-ltd-265edb0a