# Approval of Resolution Plan - Privilege Industries Limited

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02417. The document pertains to an application filed by the Resolution Professional of Privilege…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-privilege-industries-limited-ac06343b

## Summary

### Background

The document pertains to an application filed by the Resolution Professional of Privilege Industries Limited, seeking approval of the Resolution Plan submitted by SNJ Breweries Private Limited. The Corporate Debtor, Privilege Industries Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated under Section 31 of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC) approved the resolution plan with a 79.60% majority. The application before the NCLT is for the approval of this resolution plan.

## Facts

Privilege Industries Limited underwent CIRP under the Insolvency and Bankruptcy Code, 2016. Sripatham Venkatasubramanian Ramkumar was appointed as the Resolution Professional. The CIRP was initiated following an application under Section 30(6) read with Section 31 of the IBC. The Committee of Creditors (CoC) was formed, comprising Omkara Asset Reconstruction Company Private Limited and Unity Small Finance Bank Limited. The CoC replaced the initial Interim Resolution Professional (IRP) with the current Resolution Professional. Multiple meetings of the CoC were conducted to evaluate resolution plans. SNJ Breweries Private Limited submitted a resolution plan that was approved by the CoC with a 79.60% majority on August 2, 2023. The Resolution Professional submitted the

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by SNJ Breweries Private Limited meets the requirements of …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016, specifies the mandatory

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**Reasoning:** The NCLT observed that the Resolution Plan provides for the payment of insolvency

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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:** Reeta K…; Madhu S…
- **Appellants:** Sripatham…
- **Respondents:** Privilege…

## Timeline

- **2023-02-15 — Date of Initiation of…**: The Corporate Insolvency Resolution Process (CIRP) was initiated for Privilege Industries…
- **2023-03-14 — Date of Constitution of…**: The Committee of Creditors (CoC) was…

## 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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