# In the matter of Nag (India) Private Limited IA(IBC)-1023(CHE)-2021 in IBA-323-2019

> NCLT judgment dated 2022-11-09. Citation: TCN-2022-NCLT-00506. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.…

- **Court:** NCLT
- **Order date:** 9 Nov 2022
- **Citation:** TCN-2022-NCLT-00506
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nag-india-private-limited-iaibc-1023che-2021-in-iba-323-2019-e8f149b9

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Nag (India) Private Limited following an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Union Bank of India, a Financial Creditor. The Adjudicating Authority initiated CIRP vide order dated 06.01.2020. Mahalingam Suresh Kumar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP then sought approval of a resolution plan submitted by Star Exports.

## Facts

Union Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Nag (India) Private Limited under Section 7 of the IBC. The Adjudicating Authority admitted the application on 06.01.2020. Mahalingam Suresh Kumar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was constituted with Union Bank of India holding 100% voting share. Star Exports submitted a resolution plan for Rs.3.9 Crore, which was approved by the CoC on 21.09.2021. The resolution plan included provisions for payment of CIRP costs, secured financial creditors, and statutory dues (Income Tax). The Income Tax Department

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Star Exports meets the requirements of Section 30(2) of …

**Ratio:** Section 30(2) of the IBC specifies the mandatory requirements for a resolution plan,

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan to ensure it complied with the

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**Interpretation:** Section 30(2) sets the minimum standards for a resolution plan to be considered

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**Application:** The Adjudicating Authority found that the Resolution Plan submitted by Star

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Appellants:** Mahalingam Suresh…
- **Respondents:** M/s. Nag (India)…

## Timeline

- **2020-01-06 — CIRP Init…**: Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against…
- **2020-01-10 — Public Annou…**: Public announcement in 'The New Indian Express' and 'Dinamani' inviting creditors to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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