# Approval of Resolution Plan - Shree Rajeshwaranand Paper Mills Limited

> NCLT judgment dated 2024-11-27. Citation: TCN-2024-NCLT-00157. Bank of India filed an insolvency application under Section 7 of the Code being CP(IB) 9 of…

- **Court:** NCLT
- **Order date:** 27 Nov 2024
- **Citation:** TCN-2024-NCLT-00157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-shree-rajeshwaranand-paper-mills-limited-e7e17c54

## Summary

### Background

Bank of India filed an insolvency application under Section 7 of the Code being CP(IB) 9 of 2021 for initiation of Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor, Shree Rajeshwaranand Paper Mills Limited, which was admitted vide Order dated 07.12.2022. Vineeta Maheshwari was appointed as IRP. A public announcement inviting claims from creditors was made on 16.12.2022. The IRP constituted the Committee of Creditors ("CoC"). The Resolution Professional (RP) filed an application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan submitted by Mercury Terra Firma, the successful Resolution Applicant.

## Facts

Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Shree Rajeshwaranand Paper Mills Limited under Section 7 of the IBC, which was admitted on 07.12.2022. Vineeta Maheshwari was appointed as the initial IRP. Sunit Jagdishchandra Shah was later appointed as the RP. The RP published Form-G inviting Expression of Interest (EoI). The CoC was formed, comprising secured and unsecured financial creditors. Several CoC meetings were held to discuss the resolution process, including the criteria for Earnest Money Deposit (EMD), turnover, and net worth. The RP received multiple EoIs and resolution plans. The RP conducted a Swiss Challenge Mechanism for bidding. The CIRP period was extended multiple times. The suspended board of directors filed a reply

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mercury Terra Firma should be approved under Section 30(6) …

**Ratio:** Section 30(6) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority observed that the Resolution Plan was approved by the CoC with

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**Interpretation:** Section 30(6) grants the Adjudicating Authority the power to approve a

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Sunit Jagdishchand…
- **Respondents:** Shree Rajeshwarana…; Income tax…

## Timeline

- **2021-01-01 — CP(IB) No. 9/NCLT/AHM/20…**: Insolvency application…
- **2022-12-07 — Admission o…**: Corporate Insolvency Resolution Process (CIRP) initiated against Shree Rajeshwaranand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30 — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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