# In the matter of Maa Durga Rice Product Pvt. Ltd. IA (IB) No. 337-CB-2020 in TP NO. 36-CTB-2019

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-03072. The case involves an application filed by Mr. Surya Kanta Satapathy, the Resolution…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-03072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maa-durga-rice-product-pvt-ltd-ia-ib-no-337-cb-2020-in-tp-no-36-ctb-2019-9a133045

## Summary

### Background

The case involves an application filed by Mr. Surya Kanta Satapathy, the Resolution Professional (RP), for the approval of a Resolution Plan for Maa Durga Rice Product Pvt. Ltd., which was undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated following an order by the Adjudicating Authority on 04.09.2019. Mr. Satapathy was initially appointed as the interim Resolution Professional and later confirmed by the Committee of Creditors (CoC). The resolution applicant, Mrs. Lora Mitra Rath, who was also a director of the corporate debtor, submitted a resolution plan. However, the Adjudicating Authority found that Mrs. Rath, along with other directors, had engaged in fraudulent and undervalued transactions.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Maa Durga Rice Product Pvt. Ltd. following an order by the Adjudicating Authority on 04.09.2019. Mr. Surya Kanta Satapathy was appointed as the interim Resolution Professional and later confirmed by the Committee of Creditors (CoC). Mrs. Lora Mitra Rath, a director of the corporate debtor, submitted a resolution plan. The Resolution Professional published Form G and received Expressions of Interest, with Mrs. Rath being the only applicant. She submitted multiple revised resolution plans. The CoC approved the final plan with 76.01% vote. The resolution applicant also submitted an affidavit under Section 29A confirming her eligibility. However, the Adjudicating Authority found that Mrs. Rath, along

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Mrs. Lora Mitra Rath can be approved, considering her …

**Ratio:** Section 29A(g) of the Insolvency and Bankruptcy Code (IBC) 2016 disqualifies a person

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**Reasoning:** The Adjudicating Authority found that Mrs. Lora Mitra Rath, the resolution applicant, was

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**Interpretation:** Section 29A(g) is interpreted strictly to prevent individuals involved in

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**Application:** In this case, the Adjudicating Authority applied Section 29A(g) to disqualify

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Bank of…
- **Respondents:** Maa Durga Rice…

## Timeline

- **2019-04-09 — CIRP Commen…**: The Corporate Insolvency Resolution Process (CIRP) commenced following an order by the…
- **2019-11-07 — RP Confir…**: Mr. Surya Kanta Satapathy was confirmed as the Resolution Professional by the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31(1) — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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