# In the matter of Hindustan Magnesium Products Private Limited COMPANY APPLICATION 1209 OF 2022 in CP (IB) NO. 225-7-HDB-2021

> NCLT judgment dated 2023-02-17. Citation: TCN-2023-NCLT-04558. The case pertains to Company Application 1209 of 2022 in CP (IB) No. 225/7/HDB/2021 filed under…

- **Court:** NCLT
- **Order date:** 17 Feb 2023
- **Citation:** TCN-2023-NCLT-04558
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindustan-magnesium-products-private-limited-company-application-1209-of-2022-in-12810d98

## Summary

### Background

The case pertains to Company Application 1209 of 2022 in CP (IB) No. 225/7/HDB/2021 filed under Section 30(6) & 31 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Rule 11 of NCLT Rules, 2016. The application seeks approval of a resolution plan submitted by Mr. K. Venkata Ratna Prasad, which was approved by the Committee of Creditors (CoC) with 98.11% votes. The initial petition was filed by Financial Creditor Mr. K. Venkata Ratna Prasad under Section 7 of the IBC, 2016, and was admitted by the Adjudicating Authority on 19.04.2022, initiating the Corporate Insolvency Resolution Process (CIRP) against Hindustan Magnesium Products Pvt Ltd. The

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## Facts

Mr. K. Venkata Ratna Prasad, a Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Hindustan Magnesium Products Pvt Ltd under Section 7 of IBC, 2016. The Adjudicating Authority admitted the petition on 19.04.2022. Mr. V. Shankar was appointed as the Interim Resolution Professional (IRP) and continued as the Resolution Professional. The IRP made a public announcement on 24.04.2022 inviting claims from creditors. The Committee of Creditors (CoC) was constituted, comprising Manda Srinivas, State Bank of India, Konudula Venkata Ratna Prasad, Y Vijay Kumar, Ashish Jain, Subha Charan Nukathoti and Jimmy Rani. Two expressions of interest were received for resolution plans, one from Mr. K. Venkata Ratna Prasad and another from M/s. Venuka

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mr. Konudula Venkata Ratna Prasad meets the requirements …

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

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**Reasoning:** The NCLT examined the resolution plan to ensure it complied with Section 30(2) of the

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**Interpretation:** The interpretation of Section 30(2) requires a strict adherence to the

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**Application:** The NCLT found that the resolution plan provided for payment of CIRP costs,

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** K. Venkata Ratna…
- **Respondents:** Hindustan…

## Timeline

- **2022-04-19 — Admission of…**: The Adjudicating Authority admitted the petition filed by Financial Creditor Mr. K.…
- **2022-04-24 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement inviting claims from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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