# In the matter of Bhatia Coke and Energy Limited IA(IBC)-105 & 508(CHE)-2021 in IBA-307-2019

> NCLT judgment dated 2022-03-29. Citation: TCN-2022-NCLT-03479. Rare Asset Reconstruction Limited filed two applications, IA(IBC)/105(CHE)/2021 and…

- **Court:** NCLT
- **Order date:** 29 Mar 2022
- **Citation:** TCN-2022-NCLT-03479
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhatia-coke-and-energy-limited-iaibc-105-508che-2021-in-iba-307-2019-a96d654d

## Summary

### Background

Rare Asset Reconstruction Limited filed two applications, IA(IBC)/105(CHE)/2021 and IA(IBC)/508(CHE)/2021, under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking declarations that their resolution plan for Bhatia Coke and Energy Limited was not in violation of the IBC. The applicant also sought directions for the Resolution Professional (RP) to place their resolution plan before the Committee of Creditors (CoC) and for the CoC to consider it. The RP had rejected the applicant's resolution plan, citing non-compliance with Section 29A of the IBC and other issues. The RP raised concerns about the applicant's co-investor, Aqua Terra Logistics Private Limited, and its relationship with the erstwhile promoters of the Corporate Debtor. The RP also

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## Facts

Rare Asset Reconstruction Limited (RARL) submitted a resolution plan for Bhatia Coke and Energy Limited. The Resolution Professional (RP) issued an invitation for Expression of Interest (EOI) on 2020-01-15. RARL submitted its EOI on 2020-01-31. RARL submitted a resolution plan on 2020-03-13, along with a TDR for Rs. 2 Crore. The RP rejected the initial plan on 2020-03-20. RARL submitted a revised resolution plan on 2020-09-22, proposing a payment of Rs. 185.75 Crore within 2 years. RARL was declared a prospective resolution applicant on 2020-09-15. The RP requested the password for the resolution plan on 2020-09-24. The RP requested an increase in the plan amount and a declaration under Section 29A of IBC on 2020-09-27. RARL altered the plan and provided the

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## Issues and analysis

### Issue 1: Whether the Resolution Plan of the Applicant can be …

**Ratio:** The Resolution Professional (RP) has a duty to invite prospective Resolution Applicants

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**Reasoning:** The court reasoned that the RP is at liberty to seek any additional clarification or

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**Interpretation:** This means that the RP has the authority and responsibility to ensure that the

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**Application:** In this case, the Applicant failed to provide the additional documents as

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Rare Asset…
- **Respondents:** Bhatia Coke &…; Subrata M…

## Timeline

- **2020-01-15 — Invitation for…**: Resolution Professional issued…
- **2020-01-31 — Submission of…**: Rare Asset Reconstruction Limited…

## 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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