# In the matter of India Stuffyarn Limited IA-730-2023 in (IB) – 2602(ND)-2019

> NCLT judgment dated 2023-05-24. Citation: TCN-2023-NCLT-03219. The case involves an application (IA-730/2023) filed by Mr. Mohd. Nazim Khan, Chairman of the…

- **Court:** NCLT
- **Order date:** 24 May 2023
- **Citation:** TCN-2023-NCLT-03219
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-stuffyarn-limited-ia-730-2023-in-ib-2602nd-2019-1095040e

## Summary

### Background

The case involves an application (IA-730/2023) filed by Mr. Mohd. Nazim Khan, Chairman of the Monitoring Committee of M/s. India Solomon Holdings Limited, before the National Company Law Tribunal (NCLT) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The application seeks directions from the NCLT for the issuance of shares to the shareholders of M/s. India Stuffyarn Limited (Corporate Debtor) in physical form, as previously directed by the NCLAT in its order dated 25.11.2022. The NCLAT order arose from a Company Appeal (AT) (Insolvency) No. 1402 of 2022. The core issue stems from the inability to issue shares in dematerialized form to all shareholders due to the lack of

…

## Facts

1. IA-730/2023 was filed by Mr. Mohd. Nazim Khan, Chairman of the Monitoring Committee of M/s. India Solomon Holdings Limited, seeking directions for the issuance of shares to shareholders in physical form.
2. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016.
3. The NCLAT had previously directed the Adjudicating Authority to consider issuing directions for the issuance of physical shares in its order dated 25.11.2022 in Company Appeal (AT) (Insolvency) No. 1402 of 2022.
4. The Resolution Plan for M/s. India Stuffyarn Limited (“Corporate Debtor”) was approved on 04.01.2022.
5. The existing shareholding pattern of the Corporate Debtor as of 04.01.2022 and 19.05.2022

…

## Issues and analysis

### Issue 1: Whether the NCLT has the power to amend or provide for clauses in the Resolution Plan after its …

**Ratio:** The Adjudicating Authority is not empowered to amend any clause/provision of the

…

**Reasoning:** The NCLT reasoned that once a Resolution Plan has been approved by the CoC and the

…

**Interpretation:** This interpretation reinforces the finality and sanctity of the approved

…

**Application:** In this case, the NCLT acknowledged that it could not directly amend the

…

## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Mohd. Nazi…
- **Respondents:** M/s. India…; M/s Redhex IT…

## Timeline

- **2022-11-25 — NCLAT Or…**: The Hon'ble NCLAT passed a judgment in Company Appeal (AT) (Insolvency) No. 1402 of 2022,…
- **2023-01-04 — Application…**: Mr. Mohd. Nazim Khan, Chairman of Monitoring Committee of M/s. India Solomon Holdings…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-stuffyarn-limited-ia-730-2023-in-ib-2602nd-2019-1095040e