# Approval of Resolution Plan - Fabtech Sugar Limited

> NCLT judgment dated 2024-02-09. Citation: TCN-2024-NCLT-02647. The case pertains to an application filed under Section 30(6) and Section 31 of the Insolvency…

- **Court:** NCLT
- **Order date:** 9 Feb 2024
- **Citation:** TCN-2024-NCLT-02647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-fabtech-sugar-limited-f1e0af90

## Summary

### Background

The case pertains to an application filed under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional, Mr. Srigini Rajat Naidu, seeking approval of the Resolution Plan submitted by the Resolution Applicant, M/s Autade Sugars Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Fabtech Sugar Limited. The Resolution Plan was approved by the Committee of Creditors (CoC) with a voting share of 76.63%. The CIRP was initiated vide an order dated 13.05.2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Ritesh R. Mahajan was appointed as Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors. The applicant published a Public Announcement

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## Facts

M/s Fabtech Sugar Limited, the Corporate Debtor, underwent Corporate Insolvency Resolution Process (CIRP) initiated on 13.05.2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Ritesh R. Mahajan was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Srigini Rajat Naidu. The Committee of Creditors (CoC) was formed, and a public announcement was made on 20.05.2021 to invite claims from creditors. The Resolution Plan submitted by M/s Autade Sugars Private Limited was approved by the CoC with 76.63% voting share in its 20th meeting held on 27th July 2022. The Resolution Plan includes provisions for payment to secured financial creditors, unsecured financial creditors, operational creditors, employees, and workmen. The

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s Autade Sugars Private Limited meets the requirements …

**Ratio:** Section 30(2) of the IBC outlines the mandatory requirements that a resolution plan must

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**Reasoning:** The NCLT reviewed the Resolution Plan to ensure it complied with each clause of Section

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**Interpretation:** Section 30(2) is interpreted as setting a minimum threshold for the

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**Application:** The NCLT found that the Resolution Plan met all the requirements of Section

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Srigini Rajat…
- **Respondents:** M/s Fabtech Sugar…; M/s Autade Sugars…

## Timeline

- **2010-10-14 — Incorporation of…**: M/s Fabtech Sugar…
- **2021-05-13 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Fabtech Sugar…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 32 — Appeal](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-32)

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