# Approval of Resolution Plan - Alkas Spinning Mills Private Limited

> NCLT judgment dated 2023-07-05. Citation: TCN-2023-NCLT-02660. The document pertains to the resolution process of Alkas Spinning Mills Private Limited under…

- **Court:** NCLT
- **Order date:** 5 Jul 2023
- **Citation:** TCN-2023-NCLT-02660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-alkas-spinning-mills-private-limited-039a7c7a

## Summary

### Background

The document pertains to the resolution process of Alkas Spinning Mills Private Limited under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 9 of the IBC by an Operational Creditor. The Resolution Professional (RP) was appointed, and the Committee of Creditors (CoC) was formed with Union Bank of India as the sole Financial Creditor. Several CoC meetings were held to discuss and evaluate resolution plans. An application for approval of the resolution plan was filed by the RP under Section 30(6) & 31 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Alkas Spinning Mills Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 9 of the IBC, 2016 by an Operational Creditor. Union Bank of India was the sole Financial Creditor, leading to the formation of the Committee of Creditors (CoC). The initial IRP was Mr. Kannan Sambasivam, later replaced. Form G was published to invite Expression of Interest (EoI), resulting in seven EoIs. The CoC convened 12 meetings to evaluate resolution plans. The Resolution Plan submitted by A. Anand, the promoter and suspended director of the Corporate Debtor, was approved by the CoC with 100% voting share. The liquidation value of the Corporate Debtor was determined to be Rs.3,74,76,700/-, and the fair value was Rs.4,45,44,500/-.

…

## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant complies with the provisions of …

**Ratio:** The Adjudicating Authority (NCLT) is required to ensure that the Resolution Plan complies

…

**Reasoning:** The NCLT reviewed the Resolution Plan and found that it complied with the requirements of

…

**Interpretation:** Section 30(2) of the IBC, 2016, sets out the mandatory requirements for a

…

**Application:** The NCLT found that the Resolution Plan submitted by the Resolution Applicant

…

## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Respondents:** Alkas Spinning…
- **Advocates:** E. Om Pr…; A.G. Sathyanarayan…

## Timeline

- **2020-05-05 — CIRP Init…**: CIRP initiated for Alkas Spinning…
- **2020-05-09 — Public Annou…**: Public announcement made as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 164(2) — Undervalued transactions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-164)

---

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/approval-of-resolution-plan-alkas-spinning-mills-private-limited-039a7c7a