# Approval of Resolution Plan - Action Ispat and Power Private Limited

> NCLT judgment dated 2023-09-26. Citation: TCN-2023-NCLT-01474. The case involves multiple interlocutory applications concerning the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 26 Sept 2023
- **Citation:** TCN-2023-NCLT-01474
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-action-ispat-and-power-private-limited-3eeaee68

## Summary

### Background

The case involves multiple interlocutory applications concerning the Corporate Insolvency Resolution Process (CIRP) of M/s Action Ispat and Power Private Limited. The primary application, IA No. 476 (PB) 2023, was filed by the Resolution Professional for the approval of a Resolution Plan. Other applications include objections to the Resolution Plan and a request for the release of a slag crushing unit.

## Facts

The Resolution Professional (RP), Ms. Maya Gupta, filed IA No. 476 (PB) 2023 under Sections 30(6) and 31(1) of the IBC, 2016, read with Regulation 39(4) of the IBBI (CIRP Regulations), 2016, seeking approval for the Resolution Plan submitted by M/s Ocean Capital Market Limited for M/s Action Ispat and Power Limited, the Corporate Debtor. The underlying Company Petition, CP (IB) No. 1096(PB)2018, was filed by State Bank of India and later substituted by CFM Asset Reconstruction Pvt. Ltd. for the initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's plant was shut down in 2016 and went into liquidation on August 27, 2018, due to non-payment of dues to an operational creditor. The RP faced challenges in obtaining requisite records due to

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s Ocean Capital Market Limited is compliant with the …

**Ratio:** A Resolution Plan approved by the CoC with the requisite majority and found to be viable

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**Reasoning:** The NCLT found that the Resolution Plan was approved by the CoC with an 80.5% voting

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**Interpretation:** The NCLT interpreted Sections 30 and 31 of the IBC and Regulations 38 and 39 of

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**Application:** The NCLT approved the Resolution Plan but directed the Resolution Professional

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** CFM Assets…; Maya Gupta…; +5 more
- **Respondents:** M/s Action Ispat…; Maya G…; +3 more
- **Advocates:** For the Resolution…; Devansh…; +6 more

## Timeline

- **March 23, 2022 — Admission…**: The Company Petition CP (IB) No.1096(PB)2018 was admitted, initiating CIRP for the…
- **February 23, 2022 — Insolvency Commencement…**: Ms. Maya Gupta was appointed as…

## 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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