# Approval of Resolution Plan - Drish Shoes Limited

> NCLT judgment dated 2024-07-01. Citation: TCN-2024-NCLT-01103. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s Drish…

- **Court:** NCLT
- **Order date:** 1 Jul 2024
- **Citation:** TCN-2024-NCLT-01103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-drish-shoes-limited-d71bd6ca

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s Drish Shoes Limited following an application by the Operational Creditor M/s Reem Tanners under Section 9 of the IBC, 2016. The application was admitted on 12.05.2022, and Mr. Pardeep Kumar Kabra was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Mohit Chawla replaced him as the Resolution Professional (RP). The CIRP involved the constitution of a Committee of Creditors (CoC) with Bank of India as the sole financial creditor. The RP received multiple Expressions of Interest (EOIs) and ultimately three Prospective Resolution Applicants (PRAs) submitted resolution plans. The CoC approved the resolution plan submitted by M/s Saboo Tor Pvt Ltd with 100%

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## Facts

M/s Reem Tanners Pvt Ltd, an operational creditor, initiated CIRP against M/s Drish Shoes Limited under Section 9 of IBC, 2016. The CIRP commenced on 12.05.2022. Mr. Pardeep Kumar Kabra was initially appointed as the IRP, later replaced by Mr. Mohit Chawla. Bank of India was the sole financial creditor, forming the CoC. The RP published Form G, inviting Expressions of Interest (EOIs) and received multiple EOIs. Three Prospective Resolution Applicants (PRAs) submitted resolution plans: Khandwala Finstock Pvt Ltd, United Biotech Pvt Ltd, and Saboo Tor Pvt Ltd. The CoC approved the resolution plan of M/s Saboo Tor Pvt Ltd with a 100% vote share on 27.07.2023. M/s Saboo Tor Pvt Ltd provided a Performance Security deposit of Rs. 10,00,00,000/- and an EMD of Rs.

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## Issues and analysis

### Issue 1: Whether IA No. 406/2024 filed by Drish Shoes Workers Union is maintainable for re-verification of …

**Ratio:** The Adjudicating Authority does not have jurisdiction to adjudicate upon the entitlement

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**Reasoning:** The Tribunal observed that the issue of workers' entitlement to salary for the layoff

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**Interpretation:** Section 60(5) of the IBC, 2016, defines the jurisdiction of the Adjudicating

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**Application:** The Adjudicating Authority found that the issue of workers' entitlement to

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## Parties

- **Judges:** Sh. Harnam Singh…; SH. L. N.…
- **Appellants:** Reem Tanners PVT…
- **Respondents:** Drish Shoes…; Drish Shoe…
- **Advocates:** Anand Chh…; Harsh…; +6 more

## Timeline

- **2021-07-31 — Layoff N…**: Corporate Debtor issued a layoff notice informing workers of a 45-day layoff, extended…
- **2022-05-12 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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