# Approval of Resolution Plan - Uthara Fashion Knitwear Limited

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01960. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Uthara Fashion…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-uthara-fashion-knitwear-limited-1ed1f482

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Uthara Fashion Knitwear Limited. The CIRP was initiated by the Adjudicating Authority on 01.07.2022, based on an application by Stressed Assets Stabilization Fund (SASF), a Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Thilagar Murugesan was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Chandrasekhar Sagutoor as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and several meetings were held to consider a resolution plan. The RP filed an application IA(IBC)/1747/(CHE)/2023 seeking approval of the resolution plan submitted by Shree Veerakumar Fibre.

## Facts

Uthara Fashion Knitwear Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 01.07.2022 by the Adjudicating Authority upon application by Stressed Assets Stabilization Fund (SASF) under Section 7 of IBC, 2016. Chandrasekhar Sagutoor was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed and convened several meetings. A resolution plan was submitted by Shree Veerakumar Fibre, Proprietor Mr. Mantharasalam Palanisamy, with a net worth of Rs. 31.28 Crore as of 10.08.2023. The CoC approved the resolution plan with 100% voting share. The resolution plan proposed a total amount of Rs. 25.60 Crore, higher than the liquidation value of Rs. 11.69 Crore. The plan involved equity infusion, unsecured loans, and

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Shree Veerakumar Fibre complies with the requirements of …

**Ratio:** Section 30(2) of the IBC mandates that a resolution plan must provide for the payment of

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**Reasoning:** The Adjudicating Authority examined the resolution plan and found that it complied with

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**Interpretation:** Section 30(2) sets out the minimum requirements that a resolution plan must

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**Application:** In this case, the resolution plan submitted by Shree Veerakumar Fibre was found

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Respondents:** Uthara Fashion…; M/s. Uthara…
- **Advocates:** Bhagavath…; Anita S…; +1 more

## Timeline

- **2022-07-01 — Initiation…**: Corporate Insolvency Resolution Process…
- **2022-07-09 — Public Annou…**: Public Announcement regarding initiation of…

## 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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