# In the matter of Suzuki Textiles Limited

> NCLT judgment dated 2023-01-18. Citation: TCN-2023-NCLT-05005. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Suzuki Textiles…

- **Court:** NCLT
- **Order date:** 18 Jan 2023
- **Citation:** TCN-2023-NCLT-05005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suzuki-textiles-limited-6af0235b

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Suzuki Textiles Limited. The CIRP was initiated based on an application filed by Sangam (India) Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Resolution Professional (RP), Mr. Prashant Agrawal, was appointed to manage the CIRP. The Committee of Creditors (CoC) was formed, and various steps were taken, including public announcements, verification of claims, and appointment of registered valuers. Several Interim Applications (IAs) were filed during the CIRP, addressing issues such as control of assets, avoidance transactions, and claims adjudication. The CoC approved a resolution plan submitted by M/s Sai Leela Synthetics Private Limited with a 99.99% voting share.

## Facts

Suzuki Textiles Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application by Sangam (India) Limited. Mr. Prashant Agrawal was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and a resolution plan was sought. M/s Sai Leela Synthetics Private Limited submitted a resolution plan that was approved by the CoC with 99.99% voting share. The resolution plan proposed a total value of Rs. 31.70 crores, including upfront payments and balance payments over a specified period. The plan also addressed the treatment of various creditor classes, including secured financial creditors, unsecured financial creditors, employees, and workmen. The RP filed an application with the NCLT for approval of the resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by M/s Sai Leela Synthetics Private Limited meets the …

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

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**Reasoning:** The NCLT perused the records and found that the Resolution Plan confirmed to the criteria

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

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**Application:** The NCLT applied the requirements of Section 30(2) to the specific details of

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Prashant A…
- **Respondents:** Suzuki Textiles…; Abhishek…

## Timeline

- **2019-01-01 — CP No. (IB)- 275/9/JPR/2…**: Initiation of Corporate Insolvency Resolution Process (CIRP) under CP No. (IB)-…
- **2022-01-31 — Admission…**: Hon'ble Tribunal admitted Suzuki Textiles Limited into Corporate Insolvency Resolution…

## 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)

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