# In the matter of Magppie International Ltd.

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02631. The case involves applications (I.A. 5457/2021, I.A. 196/2022, and I.A. 5227/2021) filed in…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/magppie-international-ltd-69de377d

## Summary

### Background

The case involves applications (I.A. 5457/2021, I.A. 196/2022, and I.A. 5227/2021) filed in connection with the insolvency resolution process of Magppie International Ltd. under the Insolvency and Bankruptcy Code, 2016. Tata Financial Services Limited and Yes Bank Limited filed applications seeking rejection of the resolution plan approved by the Committee of Creditors (CoC), alleging discrimination within the same class of financial creditors. Mr. Vivek Raheja, the Resolution Professional, filed an application seeking approval of the resolution plan. The resolution plan was approved by the CoC with 77.45% votes.

## Facts

The Corporate Debtor is Magppie International Ltd. A resolution plan was approved by the CoC with 77.45% votes. The resolution plan proposed to pay the entire amount of Rs. 29 Crore meant for the secured financial creditors to the first charge holder, Punjab National Bank (PNB), which holds 75.31% of the voting share in the CoC. Tata Financial Services Limited and Yes Bank Limited, two secured creditors, objected to the resolution plan, arguing that it discriminates against similarly placed creditors. Tata Financial Services Limited claimed that it holds a first charge on certain assets, but the Resolution Professional stated that these assets are not traceable. Yes Bank Limited claimed that the resolution plan is contrary to settled law and discriminates between the

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## Issues and analysis

### Issue 1: Whether the resolution plan unfairly discriminates against certain secured creditors, specifically …

**Ratio:** A resolution plan must not discriminate between similarly placed creditors and should

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**Reasoning:** The Adjudicating Authority noted that the resolution plan caters primarily to the

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**Interpretation:** The principle of non-discrimination among similarly situated creditors is a

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**Application:** In this case, the Adjudicating Authority found that the resolution plan's

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## Parties

- **Judges:** SHRI. P.S.N.…; RAHUL BHA…
- **Appellants:** M/s. Tata…
- **Respondents:** M/s. Magppie…; M/s Magppie…

## Timeline

- **2021-08-06 — Submission of Revised…**: Worldfa Exports Private Limited (Resolution Applicant) submitted a revised Resolution…
- **N/A — Approval of Resolution…**: The Resolution Plan was approved by the CoC…

## 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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