# Approval of Resolution Plan - Birla Tyres Limited

> NCLT judgment dated 2023-10-19. Citation: TCN-2023-NCLT-01109. The case involves an application under Section 30(6) and Section 31(1) of the Insolvency &…

- **Court:** NCLT
- **Order date:** 19 Oct 2023
- **Citation:** TCN-2023-NCLT-01109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-birla-tyres-limited-8fad69b5

## Summary

### Background

The case involves an application under Section 30(6) and Section 31(1) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for the approval of a Resolution Plan for Birla Tyres Limited. The Corporate Debtor, Birla Tyres Limited, was admitted into CIRP on May 5, 2022. Initially, Mr. Seikh Abul Salam was appointed as the IRP and later confirmed as the RP. Subsequently, Mr. Pratim Bayal replaced him as the RP. The Committee of Creditors (CoC) approved a resolution plan submitted by Dalmia Bharat Refractories Limited with a majority vote of 82.48%. Dalmia Bharat Refractories Limited, along with its strategic partner Himadri

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## Facts

Birla Tyres Limited was admitted into CIRP on 05.05.2022. Mr. Seikh Abul Salam was initially appointed as the IRP and later confirmed as RP. Subsequently, Mr. Pratim Bayal replaced him as RP. The agenda for replacing Mr. Seikh Abul Salam was discussed in the 2nd CoC meeting on July 13, 2022. Dalmia Bharat Refractories Limited's resolution plan was approved by the CoC with 82.48% voting share. Dalmia Bharat Refractories Limited and its strategic partner, Himadri Speciality Chemicals Limited, provided a bank guarantee of Rs. 50 Crores. The Resolution Plan proposed a total plan value of Rs. 347.03 Crores for the Corporate Debtor. The Resolution Plan included provisions for CIRP costs, secured financial creditors, unsecured financial creditors, and all operational

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Dalmia Bharat Refractories Limited complies with the …

**Ratio:** The Resolution Plan must comply with the mandatory provisions of the IBC, including

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**Reasoning:** The NCLT examined the Resolution Plan to ensure that it met the requirements of Section

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**Interpretation:** Section 30 and 31 of the IBC outline the requirements for the approval of a

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**Application:** In this case, the NCLT found that the Resolution Plan submitted by Dalmia

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## Parties

- **Judges:** Smt Bidisha…; ARVIND DEVA…
- **Respondents:** Birla Tyres…

## Timeline

- **2022-05-05 — Admission in…**: The Corporate Debtor, Birla Tyres…
- **2022-05-05 — Appointment…**: Mr. Seikh Abul Salam was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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