# Approval of Resolution Plan - Suasth Health Care Foundation

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00196. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00196
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-suasth-health-care-foundation-86cad0b5

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of Suasth Health Care Foundation. The CIRP was initiated based on an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). The resolution professional (RP) received a resolution plan from Nishkala Healthcare Private Limited and Ujin Pharma Chem (Successful Resolution Applicant - SRA). The applicant, a suspended member of the board of directors, challenged the resolution plan, primarily concerning the distribution of plan value among operational creditors, particularly employees and workmen. The applicant also questioned the allocation of a NIL amount to Hari Vitthal Mission (HVM), an unsecured financial creditor, arguing that it violates Section

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## Facts

Suasth Health Care Foundation underwent Corporate Insolvency Resolution Process (CIRP) initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) received a resolution plan from Nishkala Healthcare Private Limited and Ujin Pharma Chem (Successful Resolution Applicant - SRA). A suspended member of the board of directors challenged the resolution plan, contesting the distribution of plan value, particularly the NIL allocation to unsecured financial creditor Hari Vitthal Mission (HVM). HVM's claim was initially admitted, and they were allowed representation in the Committee of Creditors (CoC), but later they were treated as a related party and ousted from the CoC. The Adjudicating Authority had previously directed the CoC to

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the SRA complies with Section 30(2)(b) of the Insolvency …

**Ratio:** Section 30(2)(b) of the I&B Code mandates that a resolution plan must provide for the

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**Reasoning:** The Adjudicating Authority analyzed Section 30(2)(b) and concluded that it contemplates

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**Interpretation:** The interpretation of Section 30(2)(b) is that it aims to protect the interests

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**Application:** In this case, the applicant argued that the NIL allocation to Hari Vitthal

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Shankar Muk…
- **Respondents:** Suasth Health…; Ravi Se…
- **Advocates:** Ramji Srin…; Deep…; +2 more

## Timeline

- **2021-08-31 — CIRP Init…**: Corporate Debtor admitted into CIRP by the Adjudicating Authority pursuant to an…
- **2021-09-03 — Public Annou…**: IRP made the publication of a public announcement in Form A dated September 03, 2021,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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