# In the matter of Innovative Tyres & Tubes Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03114. The case involves an application (IA No./1290(AHM)2023 in C.P.(IB)/261(AHM)2021) filed under…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/innovative-tyres-tubes-limited-417a57b0

## Summary

### Background

The case involves an application (IA No./1290(AHM)2023 in C.P.(IB)/261(AHM)2021) filed under Rule 11 of the National Company Law Tribunal (NCLT) Rules, 2016, seeking to modify a prior order dated 09.08.2023 that approved a resolution plan for the Corporate Debtor, Innovative Tyres and Tubes Limited. The applicant, Abhishek Nagori, Chairperson & Member of Monitoring Committee, sought modification of the approved Resolution Plan, specifically concerning the cancellation of equity share capital of the promoter and reduction of equity share capital of the public shareholders. The initial Corporate Insolvency Resolution Process (CIRP) was initiated based on an application filed by BBM Impex Private Limited under Section 9 of the IB Code, which was admitted on 28.03.2022.

## Facts

BBM Impex Private Limited initiated CIRP against Innovative Tyres and Tubes Limited by filing an application under Section 9 of the IB Code, which was admitted on 28.03.2022. Abhishek Nagori was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted on 19.04.2022, and the first meeting was held on 26.04.2022, where the applicant was confirmed as Resolution Professional. The 12th CoC meeting approved the revised resolution plan submitted by opponent no.2 on 31.12.2022. The Adjudicating Authority approved the Resolution Plan on 09.08.2023. The resolution plan proposed a reorganization of the share capital, including the cancellation of existing equity shares held by promoters and the reduction of equity shares held by

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## Issues and analysis

### Issue 1: Whether the approved Resolution Plan should be modified to address the discrepancy between the …

**Ratio:** The modification of an approved resolution plan requires sufficient justification and

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**Reasoning:** The tribunal found that the applicant failed to provide adequate evidence to support the

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**Interpretation:** The legal issue concerns the interpretation of Rule 11 of the NCLT Rules, 2016,

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**Application:** In this case, the applicant's failure to provide sufficient evidence and

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Abhishek…
- **Respondents:** Innovative Tyres…; Committee of…

## Timeline

- **2021-01-01 — Initiation…**: BBM Impex Private Limited filed an…
- **2022-03-28 — Admission o…**: The application filed by BBM Impex Private…

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