# Approval of Resolution Plan - Uthara Fashion Knitwear Limited

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01945. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Uthara Fashion…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01945
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-uthara-fashion-knitwear-limited-a37a9494

## 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, following an application by Stressed Assets Stabilization Fund (SASF) as 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 discuss and approve a resolution plan. The resolution plan submitted by Shree Veerakumar Fibre was approved by the CoC on 14.08.2023.

## Facts

Uthara Fashion Knitwear Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Stressed Assets Stabilization Fund (SASF) on 01.07.2022. Chandrasekhar Sagutoor was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed and met multiple times. Shree Veerakumar Fibre submitted a resolution plan, which was approved by the CoC on 14.08.2023. The RP filed IA(IBC)/1747/(CHE)/2023 seeking approval of the resolution plan. The resolution plan proposed a payment of Rs. 25.60 Crore, higher than the liquidation value of Rs. 11.69 Crore. The net worth of the Successful Resolution Applicant (SRA) is Rs. 31.28 Crore. The resolution plan includes provisions for payment of CIRP costs, operational creditor claims, and management

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## Issues and analysis

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

**Ratio:** The resolution plan must comply with Section 30(2) of the IBC, which includes provisions

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

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**Interpretation:** Section 30(2) of the IBC sets out the mandatory requirements that a resolution

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**Application:** In this case, the Adjudicating Authority found that the resolution plan

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** SHRI. CHANDRASEKHA…
- **Respondents:** Uthara Fashion…; M/s. Uthara…

## Timeline

- **2022-07-01 — Initiation…**: Corporate Insolvency Resolution Process (CIRP)…
- **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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