# In the matter of Innovative Tyres & Tubes Ltd.

> NCLT judgment dated 2024-06-04. Citation: TCN-2024-NCLT-01250. The case pertains to an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Jun 2024
- **Citation:** TCN-2024-NCLT-01250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/innovative-tyres-tubes-ltd-c29f86e0

## Summary

### Background

The case pertains to an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, by Abhishek Nagori, the Chairperson and Member of the Monitoring Committee of Innovative Tyres and Tubes Limited. The application seeks modification of the approved Resolution Plan, specifically concerning the cancellation of equity share capital of promoter shareholders and the reduction of equity share capital of public shareholders. The initial resolution plan was approved on 09.08.2023. The need for modification arose due to a mismatch between the actual shareholding pattern of promoters and the public as compared to what was stated in the Resolution Plan, hindering the implementation of the

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## Facts

BBM Impex Private Limited filed an application u/s. 9 of the IB Code vide CP(IB) No.261 of 2021, which was admitted on 2022-03-28, initiating CIRP for Innovative Tyres and Tubes Limited. The applicant, Abhishek Nagori, was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was constituted on 2022-04-19. The first CoC meeting was held on 2022-04-26, where the applicant was confirmed as the Resolution Professional (RP). The 12th CoC meeting on 2022-12-31 approved a revised resolution plan submitted by opponent no.2. The applicant then filed IA 260 of 2023 seeking approval of the Resolution Plan, which was approved on 2023-08-09. The approved Resolution Plan included a reorganization of the share capital. The Corporate Debtor's paid-up

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## Issues and analysis

### Issue 1: Whether the application for modification of the resolution plan should be allowed due to the …

**Ratio:** The principle of ensuring a fair and equitable resolution process under the IBC, which

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**Reasoning:** The Tribunal observed that the applicant had miscalculated the shareholding pattern of

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**Interpretation:** The legal issue centers on the interpretation of Section 60(5) of the IBC,

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**Application:** The Tribunal applied the principle of ensuring a fair resolution process by

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## Parties

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

## Timeline

- **2021-01-01 — Application by BBM…**: BBM Impex Private Limited filed an application u/s. 9 of the IB Code vide CP(IB) No.261…
- **2022-03-28 — Admission of Petition…**: The application filed by BBM Impex Private Limited was admitted for commencement of CIRP,…

## 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)

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