# Fairdeal Multifilament Private Limited

> NCLT judgment dated 2024-09-03. Citation: TCN-2024-NCLT-00688. The case involves an application under Section 30(6) and 31 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Sept 2024
- **Citation:** TCN-2024-NCLT-00688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fairdeal-multifilament-private-limited-71d3181a

## Summary

### Background

The case involves an application under Section 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) of M/s. Fairdeal Multifilament Private Limited. The Resolution Professional (RP) filed an application seeking approval of the resolution plan submitted by M/s. Parth Poly Coat Yarn Private Limited. The CIRP was initiated following a petition filed by a financial creditor, Mr. Sanjay Choudhary, under Section 7 of the Code. Initially, Mr. Sachin Naveen Sinha was appointed as the Interim Resolution Professional (IRP), but later, due to a deadlock among the Committee of Creditors (CoC), M/s. Fintech Restructuring LLP was appointed as the RP. The CoC conducted multiple meetings to evaluate resolution plans

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## Facts

M/s. Fairdeal Multifilament Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following a petition by a financial creditor. Mr. Sanjay Choudhary. Initially, Mr. Sachin Naveen Sinha was appointed as the Interim Resolution Professional (IRP). Later, M/s. Fintech Restructuring LLP was appointed as the Resolution Professional (RP) due to a deadlock among the Committee of Creditors (CoC). The RP published Form-G, receiving eleven expressions of interest. Three Prospective Resolution Applicants (PRAs) submitted resolution plans: Mr. Manoj Sanklecha, M/s. Parth Poly Coat Yarn Private Limited, and Kanter Steel (India) Private Limited. M/s. Parth Poly Coat Yarn Private Limited was selected. The CoC conducted multiple meetings, including an E-Bidding

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by M/s. Parth Poly Coat Yarn Private Limited should be …

**Ratio:** A resolution plan can only be approved if it complies with all the provisions of the

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**Reasoning:** The Tribunal found that the resolution process suffered from multiple irregularities,

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**Interpretation:** Section 31 mandates that only a plan as approved by the 'COC' can be presented

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**Application:** In this case, the Tribunal found that the voting process was flawed, and

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** FINTECH RESTRUCTUR…
- **Respondents:** Fairdeal Multifila…; M/s. fairdeal…

## Timeline

- **2022-01-01 — Company Pe…**: Company Petition No. 111 of 2022 filed by a…
- **2023-02-21 — Admission t…**: Tribunal admitted the Corporate Debtor M/s. Fairdeal Multifilament Private Limited, to…

## 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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