# In the matter of Speck Systems Ltd.

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02494. The case involves an application (IA No. 1048 of 2023) filed in an ongoing Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/speck-systems-ltd-6e5a492e

## Summary

### Background

The case involves an application (IA No. 1048 of 2023) filed in an ongoing Corporate Insolvency Resolution Process (CIRP) concerning Speck Systems Ltd. The CIRP was initiated following an order dated 02.09.2021. The applicant, Mr. K.C.M. Kumar, promoter and director of Speck Systems Ltd, sought permission to submit a resolution plan as an MSME promoter. The Resolution Professional (RP) had rejected the applicant's request, leading to the filing of this application. Previously, the CoC had approved a resolution plan submitted by Pasura Crop Care Pvt. Ltd., but the Tribunal remanded it back to the CoC on 03.01.2023 for further consideration. The CIRP period was extended until 05.07.2023.

## Facts

Speck Systems Ltd. is undergoing Corporate Insolvency Resolution Process (CIRP) initiated on 02.09.2021. Mr. K.C.M. Kumar, the promoter and director of Speck Systems Ltd. and representing the ex-management, filed an application (IA No. 1048 of 2023) seeking permission to submit a resolution plan as an MSME promoter. The Resolution Professional (RP) rejected his request via email dated 28.06.2023. The CoC had previously approved a resolution plan by Pasura Crop Care Pvt. Ltd., but the NCLT remanded it back to the CoC on 03.01.2023. The CIRP period was extended until 05.07.2023. Mr. Kumar claims eligibility to submit a plan as he runs an MSME unit. The RP contends that the resolution plan is in the final stage of voting and the applicant approached belatedly. The

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## Issues and analysis

### Issue 1: Whether the Applicant, being the Promoter of an MSME Corporate Debtor, should be granted an …

**Ratio:** The Parliament amended the I&B Code to allow Promoters of MSMEs to file Resolution

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**Reasoning:** The court relied on precedents from NCLAT, which held that in exceptional circumstances,

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**Interpretation:** The legislative intent behind allowing MSME promoters to file resolution plans

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**Application:** The court applied this ratio to the facts of the case, noting that the

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## Parties

- **Judges:** TELAPROLU…; Shri. Chara…
- **Appellants:** K.C.M.…
- **Respondents:** Speck Syste…; Raghu Babu…

## Timeline

- **2021-09-02 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2023-01-03 — Remand of Resolution…**: Tribunal remanded the Resolution Plan submitted by Pasura Crop Care Pvt. Ltd. back to 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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