# Approval of Resolution Plan - GVK Power (Goindwal Sahib) Ltd.

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00026. The case involves an application filed by Mr. Ravi Sethia, the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-gvk-power-goindwal-sahib-ltd-2274c37a

## Summary

### Background

The case involves an application filed by Mr. Ravi Sethia, the Resolution Professional (RP) of GVK Power (Goindwal Sahib) Limited, the Corporate Debtor, under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for the approval of a resolution plan submitted by Punjab State Power Corporation Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against GVK Power following the admission of an application by Axis Bank Limited, a financial creditor, under Section 7 of the IBC. The admission order was challenged before the NCLAT by GVK Energy Limited, the holding company of the Corporate Debtor, but the appeal was dismissed.

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against GVK Power (Goindwal Sahib) Limited following the admission of an application by Axis Bank Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). Mr. Ravi Sethia was appointed as the Resolution Professional (RP). Public announcements were made inviting claims from creditors. The RP received claims from financial creditors, operational creditors, employees, and workmen. The Committee of Creditors (CoC) was formed, and the RP was confirmed. The admission order was challenged before the NCLAT and subsequently before the Supreme Court by GVK Energy Limited, the holding company. The RP appointed registered valuers to assess the Corporate Debtor's assets. An invitation for Expression of

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Punjab State Power Corporation Limited meets the …

**Ratio:** Section 30(2) of the IBC specifies the requirements that a resolution plan must meet,

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**Reasoning:** The NCLT examined the resolution plan and found that it addressed the payment of CIRP

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**Interpretation:** Section 30(2) sets out the mandatory requirements for a resolution plan to be

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**Application:** The NCLT applied the requirements of Section 30(2) to the resolution plan

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## Parties

- **Judges:** N. Venkata…; SH. CHARAN…
- **Appellants:** Ravi Se…
- **Respondents:** GVK Power…; Axis Bank L…

## Timeline

- **2022-10-10 — Admission of Ap…**: The Tribunal admitted the application filed by Axis Bank Limited under Section 7 of the…
- **2022-10-21 — Public Annou…**: The Applicant made public announcements in Form A inviting claims from the creditors of…

## 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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