# In the matter of Classic Knits India Private Limited IA-285 & 1064-CHE-2021 in IBA-1181-2019

> NCLT judgment dated 2022-11-09. Citation: TCN-2022-NCLT-00509. The case involves an application (IA/1064/2021) moved by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 9 Nov 2022
- **Citation:** TCN-2022-NCLT-00509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/classic-knits-india-private-limited-ia-285-1064-che-2021-in-iba-1181-2019-001ff2e2

## Summary

### Background

The case involves an application (IA/1064/2021) moved by the Resolution Professional (RP) of Classic Knits India Private Limited under Section 30(6) & 31 of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan submitted by Knit Prime. The Corporate Insolvency Resolution Process (CIRP) was initiated against Classic Knits India Private Limited following an application under Section 9 of IBC, 2016 by an Operational Creditor, Renuka Process. An Interim Resolution Professional (IRP) was appointed, and a Committee of Creditors (CoC) was constituted. The RP was later appointed, and the CoC resolved to extend the CIRP period. The resolution plan was submitted by Knit Prime, and after several CoC meetings and negotiations, the plan was approved

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## Facts

Classic Knits India Private Limited faced Corporate Insolvency Resolution Process (CIRP) initiated by Renuka Process under Section 9 of IBC, 2016. Mr. Muthuraju was initially appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed with Union Bank of India, Canara Bank, and IDBI Bank Ltd as members, holding 71.2%, 17.8%, and 11% voting shares, respectively. CA.M. Suresh Kumar was later appointed as the Resolution Professional (RP). The CIRP period was extended by 90 days, excluding the COVID-19 lockdown period. An Expression of Interest (EOI) was published, and Knit Prime submitted a resolution plan for Rs. 15.93 Crores. The CoC negotiated with Knit Prime and requested revisions to the plan. Mr. Gautam, a suspended director,

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Knit Prime complies with the requirements of Section 30(2) …

**Ratio:** Section 30(2) of the IBC, 2016, specifies the requirements that a resolution plan must

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan and found that it complied with

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**Interpretation:** Section 30(2) of the IBC, 2016, sets out the mandatory requirements for a

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** CA M. Sures…
- **Respondents:** Classic Knits…; Mahalingam Suresh…

## Timeline

- **2019-01-01 — Initiation…**: CIRP initiated against Classic…
- **2020-02-03 — Order passed by…**: Adjudicating Authority passed an order in IBA/1181/2019 initiating CIRP against the…

## 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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