# Approval of Resolution Plan - Kiran Global Chem Limited

> NCLT judgment dated 2024-08-09. Citation: TCN-2024-NCLT-00842. The case pertains to an application filed under Section 30(6) and 31(1) of the Insolvency &…

- **Court:** NCLT
- **Order date:** 9 Aug 2024
- **Citation:** TCN-2024-NCLT-00842
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-kiran-global-chem-limited-5934b48a

## Summary

### Background

The case pertains to an application filed under Section 30(6) and 31(1) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 39(4) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, regarding the corporate insolvency resolution process (CIRP) of M/s. Kiran Global Chems Limited. The application, IA(IBC)(PLAN)/4/(CHE)/2024, was moved on 20.04.2024 by the Resolution Professional, Mr. Anil Kumar Khicha, seeking approval of the resolution plan submitted by the successful resolution applicants (SRAs), Mr. Manmohan Singh Jain and Mr. Atul Jain. The CIRP was initiated based on an application by State Bank of India under Section 7 of the IBC, and Mr. Khicha was later appointed as the

…

## Facts

Kiran Global Chems Limited, an unlisted public company manufacturing sodium silicate and potassium silicate, underwent Corporate Insolvency Resolution Process (CIRP) initiated by State Bank of India. The CIRP commenced on 27.04.2021. Anil Kumar Khicha was appointed as the Resolution Professional (RP) on 30.08.2023, replacing the previous RP. The Committee of Creditors (CoC) approved a resolution plan submitted by promoters Manmohan Singh Jain and Atul Jain with 99.08% voting share. The resolution plan involves a total resolution value of Rs. 68.56 Crores. The liquidation value of the Corporate Debtor is Rs. 176.82 Crores (excluding inventories), and the fair value is Rs. 225.08 Crores (excluding inventories). The resolution plan includes provisions for payments to

…

## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the promoters, Mr. Manmohan Singh Jain and Mr. Atul Jain, …

**Ratio:** The Adjudicating Authority's power to approve a resolution plan is circumscribed by

…

**Reasoning:** The CoC approved the resolution plan with a 99.08% voting share, indicating that the

…

**Interpretation:** Section 31(1) of the IBC mandates that once a resolution plan is approved by

…

**Application:** In this case, the CoC approved the resolution plan with a 99.08% voting share.

…

## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** ANIL KUMAR…
- **Respondents:** M/s. Kiran Global…; Manmohan Singh…

## Timeline

- **2021-04-27 — Initiation…**: CIRP initiated, IRP appointed…
- **2021-04-29 — Public Annou…**: Public announcement…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-kiran-global-chem-limited-5934b48a