# Approval of Resolution Plan - KGS Sugar and Infra Corporation Limited

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02064. The case involves an application (IA 2194/2021) moved by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02064
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-kgs-sugar-and-infra-corporation-limited-0e7c871c

## Summary

### Background

The case involves an application (IA 2194/2021) moved by the Resolution Professional, Mr. Pankaj Sham Joshi, under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking approval of the resolution plan for KGS Sugar & Infra Corporation Limited. The CIRP was initiated against the Corporate Debtor on 10.10.2019. The resolution plan submitted by Gangamai Industries and Constructions Limited (GIACL) was approved by the CoC with 99.86% majority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against KGS Sugar & Infra Corporation Limited on October 10, 2019. The initial Resolution Professional was Mr. Balady Shekhar Shetty, later replaced by Mr. Pankaj Sham Joshi. The Committee of Creditors (CoC) was formed, and several meetings were held to evaluate resolution plans. Gangamai Industries and Constructions Limited (GIACL) submitted a resolution plan that was approved by the CoC with a 99.86% majority. The resolution plan proposed a total payment of INR 135 crores to various creditors. The CIRP timeline was affected by the COVID-19 pandemic and subsequent lockdowns, leading to multiple applications for exclusion of certain periods. The resolution plan addresses the cause of default, is

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Gangamai Industries and Constructions Limited (GIACL) …

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

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**Reasoning:** The NCLT examined the Resolution Plan and found that it provides for payment of CIRP

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

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**Application:** The NCLT applied the requirements of Section 30(2) to the specific provisions

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## Parties

- **Judges:** Anu Jagmoha…; H.V. Subb…
- **Appellants:** Canara…
- **Respondents:** KGS Sugar and…; KGS Sugar & Infra…

## Timeline

- **2019-10-10 — Initiation…**: CIRP initiated against KGS Sugar…
- **2019-11-04 — Appointment…**: IRP appointed, copy of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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