# In the matter of Indian Mining Works Private Limited

> NCLT judgment dated 2024-07-01. Citation: TCN-2024-NCLT-01094. The case involves an application for approval of a resolution plan for Indian Mining Works…

- **Court:** NCLT
- **Order date:** 1 Jul 2024
- **Citation:** TCN-2024-NCLT-01094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-mining-works-private-limited-e8b0d742

## Summary

### Background

The case involves an application for approval of a resolution plan for Indian Mining Works Private Limited, a corporate debtor, under Section 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016. Variant Commercial Private Limited, an operational creditor, initiated the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the I&B Code. The Resolution Professional (RP), Sandip Kumar Kejriwal, sought approval for a resolution plan submitted by Elite Enterprises, the Successful Resolution Applicant (SRA), which was approved by the Committee of Creditors (CoC) with 100% voting shares on May 17, 2022. The CoC convened 16 meetings, and the resolution plan was deliberated upon in detail. The RP issued a Letter of Intent (LoI) to the SRA, who furnished a

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## Facts

Variant Commercial Private Limited, an operational creditor, initiated CIRP against Indian Mining Works Private Limited under Section 9 of the I&B Code. The CIRP was admitted on February 24, 2020, and Sandip Kumar Kejriwal was appointed as the IRP and later as the RP. The RP received claims from creditors and constituted the CoC on March 18, 2020, with Axis Bank Limited and SREI Equipment Finance Limited as secured financial creditors. The CoC approved a resolution plan submitted by Elite Enterprises with 100% voting shares on May 17, 2022. The RP issued a Letter of Intent (LoI) to Elite Enterprises, who furnished a Demand Draft of Rs. 5 Lakh as performance security. The resolution plan proposed a NIL amount towards the category of operational creditors, including

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## Issues and analysis

### Issue 1: Whether the resolution plan violates Section 30(2)(b) of the I&B Code with regard to allocation …

**Ratio:** Section 30(2)(b) of the I&B Code mandates that a resolution plan must provide for the

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**Reasoning:** The Adjudicating Authority relied on the precedents set in Essar Steel, DBS Bank Limited,

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**Interpretation:** The legislative intent behind Section 30(2)(b) is to provide a mandatory

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**Application:** In this case, the resolution plan proposed a NIL amount towards the operational

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Sandip Kumar…
- **Respondents:** Indian Mining…; Variant Commercial…

## Timeline

- **2020-02-24 — CIRP Init…**: Order admitting the application under Section 9 of I&B Code and initiating CIRP against…
- **2020-02-29 — Public Annou…**: IRP made the public announcement…

## 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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