# In the matter of Reliance Naval and Engineering Limited IA No. 292-AHM-2022 in CP (IB) 418-AHM-2018

> NCLT judgment dated 2022-12-07. Citation: TCN-2022-NCLT-00215. The case involves IA No. 292/AHM/2022 in CP (IB) 418/AHM/2018, concerning the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Dec 2022
- **Citation:** TCN-2022-NCLT-00215
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reliance-naval-and-engineering-limited-ia-no-292-ahm-2022-in-cp-ib-418-ahm-2018-98f11602

## Summary

### Background

The case involves IA No. 292/AHM/2022 in CP (IB) 418/AHM/2018, concerning the Insolvency and Bankruptcy Code, 2016. The Resolution Professional of Reliance Naval & Engineering Limited & Ors. is the applicant. The court is addressing concerns regarding the distribution of funds to dissenting and assenting secured financial creditors, where dissenting creditors are proposed to receive a lower percentage (10.73%) of their claim compared to assenting creditors (17.73%). The court seeks clarification on several aspects of the resolution plan submitted by Hazel Mercantile Ltd. and Swan Energy Ltd., including the structure and purpose of Hazel Infra Ltd. and the rationale behind a performance bank guarantee.

## Facts

The Resolution Professional of Reliance Naval & Engineering Limited & Ors. has submitted a resolution plan. The plan proposes to pay dissenting secured financial creditors 10.73% of their claim amount, while assenting secured financial creditors are proposed to be paid 17.73% of their claim amount. Hazel Mercantile Ltd. and Swan Energy Ltd. submitted the resolution plan, with SPV Hazel Infra Ltd. (a joint venture of Hazel Mercantile Ltd. and Swan Energy Ltd.) taking over the Corporate Debtor. Hazel Infra Ltd. is incorporated in 2008. Hazel Infra Ltd. has provided a performance Bank Guarantee in favour of IDBI Bank, which is acting on behalf of the CoC of the Corporate Debtor. The court has raised concerns about the fairness of the distribution to dissenting

…

## Issues and analysis

### Issue 1: Whether the proposed distribution of funds to dissenting secured financial creditors, at 10.73% of …

**Ratio:** Section 30(2)(b) of the Insolvency and Bankruptcy Code, read with Explanation I, mandates

…

**Reasoning:** The court is concerned that the significant difference in the percentage of claims paid

…

**Interpretation:** The legal issue revolves around the interpretation of 'fair and equitable' in

…

**Application:** The court will apply the ratio to the specific facts of the case, examining the

…

## Parties

- **Judges:** KAUSHALENDRA…; DEEPTI M…
- **Appellants:** Sudip Bhatt…
- **Respondents:** Reliance Naval…

## Timeline

- **2022-12-07 — Order Da…**: Order issued by the NCLT regarding IA No.…
- **2022-12-08 — Next Hearin…**: The matter is listed for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reliance-naval-and-engineering-limited-ia-no-292-ahm-2022-in-cp-ib-418-ahm-2018-98f11602