# Approval of Resolution Plan - Khatema Fibres Limited

> NCLT judgment dated 2024-08-06. Citation: TCN-2024-NCLT-00874. The case pertains to an interlocutory application (IA No. 04/2024) filed in connection with a…

- **Court:** NCLT
- **Order date:** 6 Aug 2024
- **Citation:** TCN-2024-NCLT-00874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-khatema-fibres-limited-c63b33b7

## Summary

### Background

The case pertains to an interlocutory application (IA No. 04/2024) filed in connection with a Corporate Insolvency Resolution Process (CIRP) against Khatema Fibres Limited. The application was moved by Satya Prakash Gupta, the Resolution Professional (RP), seeking approval of the resolution plan under Sections 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The CIRP was initiated based on a petition filed by Assets Care & Reconstruction Enterprise Ltd. under Section 7 of the IBC, which was admitted on 13.10.2023.

## Facts

Assets Care & Reconstruction Enterprise Ltd. initiated CIRP against Khatema Fibres Limited under Section 7 of IBC. The CIRP was admitted on 2023-10-13. Satya Prakash Gupta was appointed as the IRP and later as RP. Public announcement was made on 2023-10-20. The last date for submission of claims was 2023-11-01, but claims were received until 2024-05-29. The CoC was constituted on 2023-11-01. The CoC was reconstituted on 2023-11-21 and approved on 2023-12-07. 10 CoC meetings were held. Expression of Interest (EOI) was invited, with the last date of receipt being 2024-01-12. 11 EOIs were received. A list of prospective resolution applicants (PRAs) was issued. KR Pulp and Papers Ltd. and Mogli Labs (India) Pvt. Ltd. submitted resolution plans by 2024-03-26. Resurgent

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mogli Labs (India) Pvt. Ltd. meets the requirements of …

**Ratio:** The legal principle is that a resolution plan must comply with the mandatory provisions

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**Reasoning:** The NCLT reasoned that the Resolution Plan was approved by the CoC with 100% voting in

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**Interpretation:** This involves interpreting the provisions of Sections 30 and 31 of the IBC and

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**Application:** The NCLT applied the legal principle to the specific facts of the case by

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Satya Prakash…
- **Respondents:** KHATEMA FIBRES…; Assets Care &…
- **Advocates:** Jasmine Dam…; Vaishali…; +2 more

## Timeline

- **2023-10-13 — CIRP Init…**: CIRP initiated against Khatema Fibres Limited based on a petition filed by Assets Care &…
- **2023-10-20 — Public Annou…**: Public announcement…

## 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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