# Approval of Resolution Plan - Capricorn Food Products India Limited

> NCLT judgment dated 2023-07-12. Citation: TCN-2023-NCLT-02558. The document pertains to the Corporate Insolvency Resolution Process (CIRP) of Capricorn Food…

- **Court:** NCLT
- **Order date:** 12 Jul 2023
- **Citation:** TCN-2023-NCLT-02558
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-capricorn-food-products-india-limited-68116e77

## Summary

### Background

The document pertains to the Corporate Insolvency Resolution Process (CIRP) of Capricorn Food Products India Limited. The CIRP was initiated following an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Raasa Foods Private Limited. The Resolution Professional (RP) was appointed, and a Committee of Creditors (CoC) was constituted. The RP invited resolution plans, and several plans were submitted. The ex-promoter of the Corporate Debtor challenged the approval of the Resolution Plan. The Tribunal directed the RP to convene meetings and allowed prospective resolution applicants to revise their plans. Ultimately, the resolution plan submitted by the Consortium of Maa Kudargarhi Steel Pvt Ltd & BM Foods was approved by the CoC with a majority

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## Facts

Capricorn Food Products India Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Raasa Foods Private Limited under Section 9 of IBC, 2016. J. Karthiga was appointed as the Resolution Professional (RP). Public announcements were made on 17.11.2020, inviting claims. A Committee of Creditors (CoC) was formed on 06.12.2020, comprising eleven members, including State Bank of India, DBS Bank India Limited, and others. The RP conducted forty-one CoC meetings. Invitations for Expression of Interest (EoI) were issued on 28.01.2021, 05.05.2021, and 22.08.2021. Rahoul Jain and Suchi Jain, promoters, submitted an EoI, which was initially rejected but later accepted based on a Tribunal order. Mantra Industries submitted a resolution plan approved by the

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the Consortium of Maa Kudargarhi Steel Pvt Ltd & BM …

**Ratio:** The resolution plan must comply with Section 30(2) of the IBC, which includes provisions

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**Reasoning:** The Tribunal considered the submissions of the Resolution Professional and perused the

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**Interpretation:** Section 30(2) of the IBC sets out the mandatory requirements that a resolution

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**Application:** The Tribunal applied the requirements of Section 30(2) of the IBC to the

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** DBS Bank India…
- **Respondents:** Capricorn Food…; J. Kart…

## Timeline

- **2020-11-13 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated by the Tribunal vide order…
- **2020-11-17 — Public Annou…**: Public announcement in two newspapers inviting…

## 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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