# Approval of Resolution Plan - Kanel Industries Limited

> NCLT judgment dated 2024-10-23. Citation: TCN-2024-NCLT-00369. The case involves an application filed under Section 30(6) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Oct 2024
- **Citation:** TCN-2024-NCLT-00369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-kanel-industries-limited-cb9432c1

## Summary

### Background

The case involves an application filed under Section 30(6) of the Insolvency & Bankruptcy Code, 2016 by the Resolution Professional (RP) of the corporate debtor, Kanel Industries Limited. The application seeks the approval of a resolution plan that was approved by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated following an application filed by Ardent Ventures LLP, the sole financial creditor, under Section 7 of the IBC. The CIRP was admitted on 03.12.2021, and the applicant, Shri Prashant B. Patel, was appointed as the Interim Resolution Professional (IRP).

## Facts

Ardent Ventures LLP, as the sole financial creditor, initiated CIRP against Kanel Industries Limited by filing an application under Section 7 of the IBC, which was admitted on 03.12.2021. Shri Prashant B. Patel was appointed as the IRP and later confirmed as the RP. The CoC, comprising Ardent Ventures LLP and the State Tax Department, convened several meetings to evaluate resolution plans. Initially, a plan from M/s. Kundan Care Products Limited was rejected. Three resolution plans were received, including one from Ardent Ventures LLP, which was eventually approved by the CoC after revisions directed by the Tribunal following a Supreme Court judgment. The revised resolution plan was approved with 100% voting in the 6th CoC meeting held on 04.04.2024. The resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant complies with the provisions of …

**Ratio:** Section 30(2) of the IBC and Regulation 38 (1A) of the CIRP Regulations outline the

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**Reasoning:** The court observed that the Resolution Plan had been approved with 100% voting share and

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**Interpretation:** This provision ensures that the resolution plan adheres to the legal framework

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**Application:** The court applied this principle by verifying that the Resolution Plan met all

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Prashant B…
- **Respondents:** Kanel Industries…; Hiteshbhai…

## Timeline

- **2021-12-03 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP)…
- **2021-12-11 — Public Annou…**: Public announcement inviting claims from creditors of the Corporate Debtor was made in…

## 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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