# In the matter of Shree Ambika Sugars Limitied

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03131. The case involves an application filed under Sections 230-232 and 66 of the Companies Act,…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03131
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-ambika-sugars-limitied-947b1a15

## Summary

### Background

The case involves an application filed under Sections 230-232 and 66 of the Companies Act, 2013, by Mr. Anurag Goel, the Liquidator of Shree Ambika Sugars Limited, seeking sanction and confirmation of a Scheme of Compromise proposed by SNJ Distillers Private Limited. Shree Ambika Sugars Limited was undergoing liquidation after the Committee of Creditors (CoC) did not approve a resolution plan and opted for liquidation. The Liquidator invited proposals for a scheme of compromise under Section 230, and SNJ Distillers submitted a scheme. The Stakeholders Consultation Committee (SCC) provided in-principle consent for the scheme. The scheme aims to bring the company into the SNJ Group, maximize creditor payments, and transfer management to a new set of shareholders. The

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## Facts

Shree Ambika Sugars Limited underwent Corporate Insolvency Resolution Process (CIRP) and was later ordered into liquidation on 2022-06-20 after the Committee of Creditors (CoC) rejected the resolution plan. Mr. Anurag Goel was appointed as the Liquidator. The Liquidator then invited proposals for a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013. SNJ Distillers Private Limited submitted a scheme proposing to acquire the Corporate Debtor. The Stakeholders Consultation Committee (SCC) provided in-principle consent for the scheme. The scheme proposed a total payment of INR 180.06 Crore to various stakeholders. The scheme also proposed the creation of a trust to manage certain identified assets, including the outcome of arbitration

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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 inherent powers under Rule 11 of the NCLT Rules, 2016, and Section 230

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

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**Interpretation:** The Tribunal interpreted Rule 11 of the NCLT Rules, 2016, Section 230 of the

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**Application:** The Tribunal applied the ratio to the facts of the case, noting that the SCC

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## Parties

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

## Timeline

- **2019-12-18 — Corporate Debtor…**: Shree Ambika Sugars…
- **2020-08-14 — Expression of Interest…**: The Applicant issued an…

## 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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