# In the matter of Automotive Coaches & Components Limited MA(IBC)-95,848, & 1035(CHE)-2021 & IA(IBC)-64(CHE)-2022 in IBA-660-2019

> NCLT judgment dated 2022-03-18. Citation: TCN-2022-NCLT-03670. The case involves multiple applications filed in the matter of M/s. Automotive Coaches and…

- **Court:** NCLT
- **Order date:** 18 Mar 2022
- **Citation:** TCN-2022-NCLT-03670
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/automotive-coaches-components-limited-maibc-95848-1035che-2021-iaibc-64che-2022-4a320081

## Summary

### Background

The case involves multiple applications filed in the matter of M/s. Automotive Coaches and Components Limited under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following a default in repayment to Bank of Maharashtra. Several applications were filed, including those seeking liquidation of the Corporate Debtor, directions for the Resolution Professional, and consideration of resolution plans. The Committee of Creditors (CoC) ultimately decided to liquidate the Corporate Debtor as the resolution plans received were below the liquidation value.

## Facts

M/s. Automotive Coaches and Components Limited (ACCL) underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the Financial Creditor, Bank of Maharashtra, due to a default of Rs. 77,47,49,205/- as of 31.10.2018. The CIRP was initiated on 03.09.2019. Mr. Madurai Sundaram Sankar was initially appointed as the Interim Resolution Professional (IRP), later replaced by the applicant, Mr. Subrata Maity. Several CoC meetings were held to explore resolution plans. The CoC authorized the reissue of Form G to invite resolution applicants. It was discovered that the erstwhile Promoter, Jai Krishna Sudharsan, had become a Director of two other companies after ACCL became an NPA, leading to a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The Adjudicating Authority is not expected to do anything more upon receipt of a rejected

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**Reasoning:** The court relied on the Supreme Court's judgment in K. Sashidhar v. Indian Overseas Bank,

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**Interpretation:** This principle reinforces the autonomy of the CoC in making decisions regarding

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**Application:** The court applied this principle by refusing to interfere with the CoC's

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** M/s. Agniti…
- **Respondents:** M/s. Automotive…; Subrata…

## Timeline

- **2018-10-31 — Default…**: Corporate Debtor defaulted in…
- **2019-09-03 — CIRP Init…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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