# In the matter of LN Industries India Limited IA 1563 of 2022 in CP (IB) NO.17-9-HDB-2022

> NCLT judgment dated 2023-03-24. Citation: TCN-2023-NCLT-04065. The case pertains to IA (IBC) 1563/2022 filed in CP(IB) No. 17/9/HDB/2022 under Section 30(6) &…

- **Court:** NCLT
- **Order date:** 24 Mar 2023
- **Citation:** TCN-2023-NCLT-04065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ln-industries-india-limited-ia-1563-of-2022-in-cp-ib-no17-9-hdb-2022-69990a11

## Summary

### Background

The case pertains to IA (IBC) 1563/2022 filed in CP(IB) No. 17/9/HDB/2022 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. The application seeks approval of the resolution plan submitted by Mr. Ratakonda Vivek Kumar jointly with Ashok Kumar Buddharaju, which was approved by the Committee of Creditors (CoC) with 100% votes. The main petition was filed by the Operational Creditor, M/s CJ Chemicals Private Limited, under Section 9 of the IBC, 2016, and was admitted by the Adjudicating Authority on 01.07.2022, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s LN Industries India Limited.

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## Facts

M/s CJ Chemicals Private Limited initiated CIRP against M/s LN Industries India Limited under Section 9 of IBC, which was admitted on 01.07.2022. Mr. Maligi Madhusudhana Reddy was appointed as the Resolution Professional. The CoC was formed, comprising financial creditors. The Resolution Professional received 13 requests from Prospective Resolution Applicants, and two PRAs fulfilled the requirements. The Resolution Professional provided the Information Memorandum and Evaluation Matrix. Two resolution plans were received from Kundan Care Products Limited and Ratakonda Vivek Kumar along with Ashok Kumar Buddharaju. The CoC approved the resolution plan submitted by Ratakonda Vivek Kumar jointly with Ashok Kumar Buddharaju with 100% votes. The resolution plan contemplates

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the Resolution Applicant satisfies the requirements of …

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

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**Reasoning:** The NCLT considered the submissions of the Resolution Professional and the approval of

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**Interpretation:** Section 30(2) of the IBC and related regulations are interpreted to ensure that

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**Application:** The NCLT applied the ratio by examining the resolution plan to ensure that it

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** CJ Chemiclas Pvt…
- **Respondents:** L N Industries…

## Timeline

- **2022-07-01 — Admission of Section 9…**: The Adjudicating Authority admitted the Section 9 application filed by M/s CJ Chemicals…
- **2022-07-09 — Public Annou…**: Public announcement was made on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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