# In the matter of Meenakshi Energy Ltd.

> NCLT judgment dated 2023-08-10. Citation: TCN-2023-NCLT-02086. The application was filed under Section 60(5) of the IB Code, 2016, challenging the resolution…

- **Court:** NCLT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLT-02086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/meenakshi-energy-ltd-92ca16cb

## Summary

### Background

The application was filed under Section 60(5) of the IB Code, 2016, challenging the resolution plan approved by the Committee of Creditors (CoC) of the Corporate Debtor, Meenakshi Energy Ltd. The applicant, Devi Trading & Holding Pvt. Ltd., is an unsecured financial creditor with a 4.29% voting share in the CoC. The applicant contends that the resolution plan presented to the NCLT for approval differs from the plan voted upon by the CoC, particularly regarding EBITDA figures and the distribution mechanism, which allocates nothing to unsecured financial creditors. The applicant argues that the CoC failed to exercise its commercial wisdom and improperly followed the waterfall mechanism under Section 53(1) of the IBC, 2016.

## Facts

1. Meenakshi Energy Ltd. was admitted into CIRP on 07.11.2019 based on an application by State Bank of India under Section 7 of the IBC, 2016.
2. Ravi Sankar Devarakonda was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP).
3. Devi Trading & Holding Pvt. Ltd. is an unsecured financial creditor with a claim of Rs. 159.56 Crores, representing a 4.29% voting share in the CoC.
4. A resolution plan submitted by Prudent ARC Ltd and Vizag Minerals and Logistics Pvt. Ltd. was rejected by the CoC on 11.07.2022.
5. The NCLT extended the CIRP timeline on 25.07.2022, allowing a fresh round of bidding.
6. Three resolution plans were received from Vedanta Ltd., Jindal Power Ltd., and PAL-VMLL.
7. The CoC approved Vedanta

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted for approval to the NCLT is the same as the resolution plan …

**Ratio:** The resolution plan submitted to the Adjudicating Authority must be the same as the one

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**Reasoning:** The NCLT concluded that the resolution plan dated 05/01/2023 was a consolidated version

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**Interpretation:** The Adjudicating Authority's approval should be based on the resolution plan as

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**Application:** The NCLT determined that the resolution plan submitted for approval was a

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** Devi Trading &…
- **Respondents:** Meenakshi Energy…; Ravi Sankar…

## Timeline

- **2019-11-07 — CIRP Init…**: Meenakshi Energy Ltd. admitted into CIRP…
- **2019-11-29 — CoC Form…**: IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor, and the…

## 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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