# Approval of Resolution Plan - Rosvar Steels Pvt. Ltd.

> NCLT judgment dated 2023-11-17. Citation: TCN-2023-NCLT-00731. The case involves two applications, IA(IBC)/851(CHE)/2023 and IA(IBC)/1581(CHE)/2023, both…

- **Court:** NCLT
- **Order date:** 17 Nov 2023
- **Citation:** TCN-2023-NCLT-00731
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-rosvar-steels-pvt-ltd-1789cc17

## Summary

### Background

The case involves two applications, IA(IBC)/851(CHE)/2023 and IA(IBC)/1581(CHE)/2023, both related to the Corporate Insolvency Resolution Process (CIRP) of Rosvar Steels Private Limited. The CIRP was initiated following an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by a financial creditor. Mrs. Jayasree was initially appointed as the Interim Resolution Professional (IRP), who then published notices in the Financial Express and Makkal Kural. CA M. Suresh Kumar was later appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) convened multiple meetings to discuss and approve a resolution plan. The RP received two resolution plans and negotiated with the prospective resolution applicants (PRAs) for improved

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## Facts

Rosvar Steels Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 7 of the IBC by a financial creditor. Mrs. Jayasree was initially appointed as the IRP, later replaced by CA M. Suresh Kumar as the RP. The IRP published notices in 'Financial Express' and 'Makkal Kural'. The CoC convened multiple meetings, including negotiations with two Prospective Resolution Applicants (PRAs). The 180-day CIRP period was extended by 90 days. The RP placed revised resolution plans before the CoC, which approved the plan submitted by Mr. Ravichandran and Mr. Ragulan with 97.60% voting share. Lotus Steels, an unsuccessful resolution applicant represented by Mr. Rambabu Kankani, objected to the approved plan, arguing their

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mr. Ravichandran and Mr. Ragulan for Rosvar Steels Private …

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

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**Reasoning:** The Tribunal relied on Supreme Court judgments, including K. Sashidhar v. Indian Overseas

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**Interpretation:** Section 31 of the IBC grants the Adjudicating Authority the power to approve a

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**Application:** The Tribunal found that the Resolution Plan submitted by Mr. Ravichandran and

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** CA M. Sures…
- **Respondents:** Rosvar Steels…; Ravicha…

## Timeline

- **2022-06-09 — CIRP Init…**: Tribunal initiated CIRP against Corporate…
- **2022-06-16 — Paper Publicati…**: IRP caused paper publication on 16.06.2022 in accordance with under Section 15 of IBC,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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