# In the matter of Swastik Ceracon Limited IA-428(AHM)2021 in CP(IB) 175 of 2018

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02163. The application was filed under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/swastik-ceracon-limited-ia-428ahm2021-in-cpib-175-of-2018-ab1c8446

## Summary

### Background

The application was filed under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional (RP) of Swastik Ceracon Limited, seeking approval of the resolution plan submitted by Ajita Sil-Chem Pvt. Ltd. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 15.01.2019. An Interim Resolution Professional (IRP) was appointed, who made a public announcement and formed a Committee of Creditors (COC). The COC initially approved a resolution plan submitted by Gabon Seramik Pvt. Ltd., but it was later withdrawn due to objections regarding related party issues. The COC then considered other resolution plans and ultimately approved the plan submitted by Ajita Sil-Chem Pvt. Ltd.

## Facts

On 15.01.2019, Swastik Ceracon Limited was admitted into CIRP. Ravi Kapoor was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement on 30.01.2019, inviting creditors to submit claims. On 20.02.2019, the IRP formed the Committee of Creditors (COC). The COC comprised Bank of Baroda (erstwhile Dena Bank) with 16.05% voting share, State Bank of India with 21.65% voting share, Indian Overseas Bank with 21.13% voting share, Pegasus Assets Reconstruction Pvt. Ltd. with 27.72% voting share, The Mehsana Urban Cooperative Bank Ltd. with 9.90% voting share, Edelweiss Asset Reconstruction Company Ltd. with 2.49% voting share, and Reliance Commercial Finance Limited with 1.06% voting share. The first COC meeting was held on 02.03.2019,

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by M/s. Ajita Sil-Chem Privat Limited complies with the …

**Ratio:** Section 30(2) of the IBC, 2016 outlines the requirements that a resolution plan must meet

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**Reasoning:** The Adjudicating Authority examined the resolution plan to ensure it met the requirements

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**Interpretation:** Section 30(2) is interpreted to ensure that resolution plans are fair,

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**Application:** The Adjudicating Authority found that the resolution plan submitted by Ajita

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Prawincharan P…
- **Respondents:** Swastik Ceracon…; COC of Swastic…

## Timeline

- **2019-01-15 — Admission in…**: The Corporate Debtor, Swastik Ceracon Limited, was admitted into the Corporate Insolvency…
- **2019-01-30 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement of the CIRP,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30 — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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