# In the matter of CICIL Biochem Private Limited

> NCLT judgment dated 2024-03-11. Citation: TCN-2024-NCLT-02128. The case involves an application filed by the Financial Creditors of Cicil Biochem Private…

- **Court:** NCLT
- **Order date:** 11 Mar 2024
- **Citation:** TCN-2024-NCLT-02128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cicil-biochem-private-limited-7439a144

## Summary

### Background

The case involves an application filed by the Financial Creditors of Cicil Biochem Private Limited, the Corporate Debtor, seeking a direction regarding the profits accrued during the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor, engaged in oil trading, was admitted to insolvency on 01.10.2019, with the Respondent appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP). During the CIRP, the Corporate Debtor's facilities were given on a job work arrangement to M/s. Shri Ganesh Enterprises. The resolution process culminated in the approval of a Resolution Plan on 06.03.2021. A question arose regarding the utilization of the money from the job work, which significantly exceeded the CIRP costs,

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## Facts

The Corporate Debtor, Cicil Biochem Private Limited, was in the business of oil trading and was admitted to insolvency on 01.10.2019. The Respondent, Arun Kapoor, was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). During the CIRP, the Corporate Debtor's facilities were given on a job work arrangement to M/s. Shri Ganesh Enterprises, generating a monthly compensation of Rs 5,50,000 plus GST and electricity expenses. The resolution process culminated in the approval of a Resolution Plan on 06.03.2021 with 98.34% voting. The compensation for job work paid by M/s. Shri Ganesh Enterprises significantly exceeded the total CIRP costs, resulting in a surplus. The Resolution Plan and the request for Resolution Plan were

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## Issues and analysis

### Issue 1: Whether the profits earned during the CIRP period should be distributed to the Financial Creditors …

**Ratio:** The Hon'ble Supreme Court in Committee of Creditors of Essar Steel India Limited v.

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**Reasoning:** The court considered the commercial considerations of the parties while approving the

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**Interpretation:** The court interpreted the existing legal framework and precedents, particularly

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**Application:** The court applied the principle of fairness and equity, considering that the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Kalyan Janata…
- **Respondents:** Cicil Biochem…; Arun Ka…

## Timeline

- **2019-10-01 — Admission to I…**: Cicil Biochem Private Limited…
- **2021-03-06 — Resolution Plan…**: Resolution Plan approved in the 9th…

## 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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