# In the matter of CLC Industries Limited IA - 2236-2021 in CP(IB) - 933-PB-2019

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03398. The case pertains to an application (IA No. 2236/2021) filed under Section 30(6) of the…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03398
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/clc-industries-limited-ia-2236-2021-in-cpib-933-pb-2019-fc385e72

## Summary

### Background

The case pertains to an application (IA No. 2236/2021) filed under Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulations 37 to 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking approval of the Resolution Plan for CLC Industries Limited ('Corporate Debtor'). The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by Edelweiss Asset Reconstruction Company Limited, the Financial Creditor, under Section 7 of the IBC. The CIRP commenced on 03.01.2020. The Resolution Professional (RP) conducted several Committee of Creditors (CoC) meetings, evaluated resolution plans, and ultimately approved the plan submitted by the consortium of Manjeet Cotton Private Ltd &

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## Facts

Edelweiss Asset Reconstruction Company Limited initiated CIRP against CLC Industries Limited under Section 7 of IBC. The CIRP commenced on 03.01.2020, with Mr. Subhash Kumar Kundra appointed as the IRP and later as RP. Public announcement was made on 08.01.2020, and the last date for submission of proof of claim was 20.01.2020. The RP received claims from various financial creditors, including Asset Reconstruction Company (India) Limited and Edelweiss Asset Reconstruction Company Limited. Nineteen CoC meetings were held. The CoC approved the resolution plan submitted by Manjeet Cotton Pvt Ltd & Vitthal Corporation Limited (MCPL & VCL) with 92.85% voting share. The fair value of the Corporate Debtor was estimated at Rs. 236.05 crore, and the liquidation value at

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the consortium of Manjeet Cotton Private Ltd and Vitthal …

**Ratio:** Section 30(2) of the IBC outlines the mandatory requirements for a resolution plan,

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan to ensure it complied with the

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**Interpretation:** The interpretation involves ensuring that the Resolution Plan adheres to the

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**Application:** The Adjudicating Authority found that the Resolution Plan, with the

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Edelweiss Asset…
- **Respondents:** CLC Industries…; CLC Industries…
- **Advocates:** Gaurav…; Honey S…; +7 more

## Timeline

- **2019-01-01 — CP(IB) F…**: Company Petition CP(IB) No.933(PB)2019 filed by Edelweiss Asset Reconstruction Company…
- **2020-01-03 — Admission…**: Adjudicating Authority admitted 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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