# In the matter of Shree Ambika Sugars Limitied

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03091. The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-ambika-sugars-limitied-11550900

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Shree Ambika Sugars Limited. The application was filed under Sections 230-232 and 66 of the Companies Act, 2013, by Mr. Anurag Goel, the liquidator, seeking sanction and confirmation of a Scheme of Compromise proposed by SNJ Distillers Private Limited. The Committee of Creditors (CoC) had earlier resolved to liquidate the Corporate Debtor. The Liquidator then invited proposals for a scheme of compromise under Section 230 of the Companies Act, 2013. SNJ Distillers Private Limited submitted a scheme, which was then considered by the Stakeholders Consultation Committee (SCC). The SCC gave its in-principle consent for the scheme.

## Facts

The Corporate Debtor, Shree Ambika Sugars Limited, was admitted into CIRP on 2019-12-18. The Petitioner, Mr. Anurag Goel, was appointed as the IRP and later confirmed as the RP. An Expression of Interest (EoI) was issued on 2020-08-14, and two resolution plans were received. The CoC did not approve the resolution plan and resolved to liquidate the Corporate Debtor. The Tribunal ordered liquidation on 2022-06-20. The Liquidator carried out the liquidation process and invited proposals for a scheme of compromise under Section 230 of the Companies Act, 2013. SNJ Distillers Private Limited submitted a scheme. The Stakeholders Consultation Committee (SCC) was formed and gave in-principle consent for the scheme. The scheme proposed a total payment of INR 180,06,00,000/-

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to approve the formation of a Trust in the Scheme under the …

**Ratio:** The Tribunal has the power to approve the formation of a Trust under Rule 11 of the

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**Reasoning:** The Tribunal relied on the case of St.John Freight Systems Limited, where it permitted

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**Interpretation:** The term 'arrangement' and 'compromise' under Section 230 of the Companies Act,

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**Application:** The Tribunal applied the legal principles to the specific facts of the case,

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Anurag…
- **Respondents:** Shree Ambika…

## Timeline

- **2019-12-18 — CIRP Admi…**: Corporate Debtor…
- **2020-08-14 — EoI Issu…**: Expression of Interest…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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