# Approval of Resolution Plan - Balaji Paper & Newsprint Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03076. The Resolution Professional of Balaji Paper and Newsprint Private Limited, the Corporate…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-balaji-paper-newsprint-private-limited-5ef942c7

## Summary

### Background

The Resolution Professional of Balaji Paper and Newsprint Private Limited, the Corporate Debtor, filed an application seeking approval and final sanction of the Resolution Plan. The Resolution Plan was submitted by Pinax Paper Mills Private Limited and Pinax Steel Industries Private Limited, the Successful Resolution Applicant (SRA). The Committee of Creditors (CoC) of Balaji Paper and Newsprint Private Limited approved the Resolution Plan with a 100% voting share. The Letter of Intent (LoI) was issued to the SRA, who furnished the Performance Security. Jai Kishore Gupta initiated the Corporate Insolvency Resolution Process (CIRP) against Balaji Paper and Newsprint Private Limited by filing an application under Section 9 of the I&B Code, 2016. The Adjudicating

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## Facts

Jai Kishore Gupta, an Operational Creditor, initiated CIRP against Balaji Paper and Newsprint Private Limited, the Corporate Debtor, under Section 9 of the I&B Code. The application was admitted on 2022-05-06, and Mr. Bijay Murmuria was appointed as the Interim Resolution Professional (IRP). Subsequently, Mrs. Rachna Jhunjhunwala was appointed as the new Resolution Professional (RP) on 2023-08-09. The Committee of Creditors (CoC) was constituted with two Secured Financial Creditors: Indian Bank (58.62% voting share) and Indian Overseas Bank (41.38% voting share). The CoC approved the Resolution Plan submitted by Pinax Paper Mills Private Limited and Pinax Steel Industries Private Limited with 100% voting share. The Letter of Intent (LoI) was issued on 2023-10-07,

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the consortium of Pinax Paper Mills Private Limited and …

**Ratio:** Section 31(1) of the I&B Code provides for the approval of a resolution plan by the

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**Reasoning:** The Adjudicating Authority perused the documents on record and found that the Resolution

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**Interpretation:** Section 31(1) mandates that a resolution plan, once approved by the CoC and

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**Application:** The Adjudicating Authority, being satisfied that the Resolution Plan meets the

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## Parties

- **Judges:** BIDISHA BA…; D. AR…
- **Appellants:** Jai Kishore…
- **Respondents:** Balaji Paper and…

## Timeline

- **2022-05-06 — CIRP Init…**: Application under Section 9 of I&B Code…
- **2023-08-09 — RP Appoin…**: Mrs. Rachna Jhunjhunwala 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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