# Approval of Resolution Plan - JMT Auto Limited

> NCLT judgment dated 2023-08-21. Citation: TCN-2023-NCLT-01975. The case pertains to IA No. 1067 of 2023 filed by Mr. Pardeep Kumar Sethi, the Resolution…

- **Court:** NCLT
- **Order date:** 21 Aug 2023
- **Citation:** TCN-2023-NCLT-01975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-jmt-auto-limited-535fa4d9

## Summary

### Background

The case pertains to IA No. 1067 of 2023 filed by Mr. Pardeep Kumar Sethi, the Resolution Professional (RP) of JMT Auto Limited, seeking approval of the resolution plan under Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016. The underlying main petition, CP (IB)-1088/(ND)/2018, was filed by Axis Bank Limited against JMT Auto Limited under Section 7 of the IBC, which was admitted on 23.02.2022, initiating the Corporate Insolvency Resolution Process (CIRP). Mr. Pardeep Kumar Sethi was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP.

## Facts

Axis Bank Limited filed a petition against JMT Auto Limited under Section 7 of the IBC, which was admitted on 23.02.2022, initiating the Corporate Insolvency Resolution Process (CIRP). Pardeep Kumar Sethi was appointed as the IRP and later confirmed as RP. A public announcement was made to invite claims, with claims aggregating to Rs. 52,40,52,376/- received. The RP constituted a Committee of Creditors (CoC) comprising Axis Bank Ltd, IDBI Bank Ltd, State Bank of India, and Bank of India. The 'Form-G' was published on 11.05.2022 to invite Expressions of Interest (EOI), with the last date for submission of Resolution Plans being 10.07.2022, later extended to 11.11.2022. Two Resolution Plans were received from Ramkrishna Forgings Limited and RKG Fund I. The CoC approved

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Ramkrishna Forgings Limited should be approved under …

**Ratio:** The discretion of the adjudicating authority (NCLT) is circumscribed by Section 31,

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**Reasoning:** The NCLT found that the Resolution Plan was approved by the CoC with the requisite

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**Interpretation:** Section 30(6) and Section 31 of the IBC provide the framework for the approval

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**Application:** The NCLT applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Axis Bank L…
- **Respondents:** JMT Auto L…

## Timeline

- **2022-02-23 — Admission of Section 7…**: The application filed by Axis Bank Limited under Section 7 of the IBC against JMT Auto…
- **2022-02-23 — Initiation…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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