# Approval of Resolution Plan - Multi Arc Coating and Straps Ltd.

> NCLT judgment dated 2024-04-29. Citation: TCN-2024-NCLT-01542. The application IA/221(AHM)2022 was filed in CP(IB) 349 of 2018 under Section 30(6) r.w Section…

- **Court:** NCLT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLT-01542
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-multi-arc-coating-and-straps-ltd-7cc6814b

## Summary

### Background

The application IA/221(AHM)2022 was filed in CP(IB) 349 of 2018 under Section 30(6) r.w Section 31 of the Insolvency and Bankruptcy Code, 2016 and Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Process of Corporate Person) Regulations 2016. The application was filed by Mrs. Bhavi Shreyansh Shah, the Resolution Professional (RP) of Multi Arc Coating and Straps Ltd., seeking approval of the revised Resolution Plan dated 13.01.2022 submitted by M/s. Nijinoy Trading Private Limited/Successful Resolution Applicant (SRA). The Corporate Insolvency Resolution Process (CIRP) was initiated against Multi Arc Coating and Straps Limited based on an application filed by Bank of India/Financial Creditor under section 7 of the Code. The Corporate Debtor

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## Facts

The Bank of India/Financial Creditor filed an application under section 7 of the Code for initiation of Corporate Insolvency Resolution Process against Multi Arc Coating and Straps Limited, referred to as 'Corporate Debtor'. The Tribunal admitted the Corporate Debtor into CIRP on 13.09.2021 and appointed the applicant as Interim Resolution Professional. The IRP formed the Committee of Creditors (CoC) comprised of two Financial Creditors namely Bank of India with 91.97 % voting share and Punjab National Bank with 8.03 % voting share. The 1st CoC Meeting was held on 12.10.2021 wherein the CoC resolved to appoint the Interim Resolution Professional as the Resolution Professional and in the same meeting the member of CoC resolved to initiate the EOI process & publish

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## Issues and analysis

### Issue 1: Whether the revised Resolution Plan submitted by Nijinoy Trading Private Limited/SRA should be …

**Ratio:** Section 30(6) r.w Section 31 of the Insolvency and Bankruptcy Code, 2016 provides the

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**Reasoning:** The court considered the fact that the CoC had approved the resolution plan with a 100%

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**Interpretation:** The legal issue revolves around the Adjudicating Authority's power and duty to

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**Application:** The court applied the ratio to the facts of the case, noting that the CoC had

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Bhavi Shreyans…
- **Respondents:** Multi Arc Coating…
- **Advocates:** Atul Sh…

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB) 349 of 2018…
- **2021-09-13 — CIRP Commen…**: Corporate Debtor…

## 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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