# In the matter of Castal Extrusion Private Limited IA (IB) No. 277-KB-2021 in CP (IB) No. 438-KB-2018

> NCLT judgment dated 2022-06-29. Citation: TCN-2022-NCLT-01983. The case pertains to an application under Section 30(6) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Jun 2022
- **Citation:** TCN-2022-NCLT-01983
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/castal-extrusion-private-limited-ia-ib-no-277-kb-2021-in-cp-ib-no-438-kb-2018-5712580e

## Summary

### Background

The case pertains to an application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 for the approval of a Resolution Plan for Castal Extrusion Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by Vijaya Bank under Section 7 of the IBC. The Resolution Professional (RP) was appointed and subsequently confirmed by the Committee of Creditors (CoC). Public announcements were made, and Expressions of Interest (EoIs) were invited from potential resolution applicants. Several CoC meetings were held to discuss and evaluate the resolution plans received.

## Facts

Vijaya Bank initiated CIRP against Castal Extrusion Private Limited under Section 7 of IBC. Niraj Agrawal was appointed as the Resolution Professional (RP). The RP made public announcements and invited Expressions of Interest (EoIs). Seven prospective resolution applicants expressed interest, and the RP shared relevant information with them. Four resolution plans were received and evaluated by the Committee of Creditors (CoC). The CoC held eleven meetings to discuss the resolution plans. Square Four Housing & Infrastructure Development Private Limited's resolution plan was approved with 100% votes in favor. The RP issued a Letter of Intent (LoI) to Square Four, who provided performance security. The RP valued the assets of the Corporate Debtor, with Fair Value (FV)

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Square Four Housing & Infrastructure Development …

**Ratio:** The Resolution Plan must comply with Section 30(2) of the IBC, which specifies the

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**Reasoning:** The court perused the documents on record and found that the Resolution Plan was approved

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**Interpretation:** Sections 30 and 31 of the IBC are interpreted to ensure that the Resolution

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** Vijaya…
- **Respondents:** Castal Extrusion…
- **Advocates:** Joy S…; Kumarjit Ba…; +10 more

## Timeline

- **2018-03-18 — Admission of Company…**: Company petition in CP (IB) No. 438/KB/2018 filed by Vijaya Bank against Castal Extrusion…
- **2020-03-20 — Public Annou…**: IRP made public announcements in Business Standard (English) and Ekdin (Bengali)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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