# In the matter of Tirupur Plaza Hotel Private Limited

> NCLT judgment dated 2024-12-18. Citation: TCN-2024-NCLT-00039. The case involves M/s. Tirupur Plaza Hotel Private Limited, which underwent Corporate…

- **Court:** NCLT
- **Order date:** 18 Dec 2024
- **Citation:** TCN-2024-NCLT-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tirupur-plaza-hotel-private-limited-629fbecf

## Summary

### Background

The case involves M/s. Tirupur Plaza Hotel Private Limited, which underwent Corporate Insolvency Resolution Process (CIRP) initiated by Small Industries Development Bank of India (SIDBI) under Section 7 of the Insolvency and Bankruptcy Code (IBC). Due to the absence of prospective resolution applicants, the Committee of Creditors (CoC) recommended liquidation. During liquidation, the liquidator disbursed a sum to the secured financial creditor. Subsequently, the Scheme Proponent, who is also the personal guarantor of the Corporate Debtor, proposed a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013, after an unsuccessful attempt to withdraw the company from liquidation under Section 12A of IBC. The application IA/1784/CHE/2024 was filed

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## Facts

M/s. Tirupur Plaza Hotel Private Limited was incorporated as a private limited company on 15.02.2006, with the objective of establishing and operating a hotel in Tirupur. Its authorized and paid-up capital were Rs. 5,00,00,000/- and Rs. 4,74,51,250/-, respectively. Small Industries Development Bank of India (SIDBI), the financial creditor, initiated CIRP against the company under Section 7 of IBC, which was admitted on 25.04.2022. Due to the lack of resolution applicants, the CoC recommended liquidation on 09.12.2022, and the liquidation was allowed on 15.02.2023. The total claims received by the liquidator amounted to Rs. 16,12,93,609/-, out of which Rs. 12,88,59,725/- were admitted. The liquidator disbursed Rs. 2,45,23,367/- to the secured financial creditor. The

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## Issues and analysis

### Issue 1: Whether the Scheme of Compromise and Arrangement proposed by the Scheme Proponent under Section 230 …

**Ratio:** A compromise or arrangement can be proposed under Section 230 of the Companies Act, even

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**Reasoning:** The Tribunal considered the provisions of Regulation 2B of the IBBI (Liquidation Process)

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**Interpretation:** Section 230 of the Companies Act, 2013, read with Regulation 2B of the IBBI

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**Application:** In this case, the Scheme Proponent proposed a scheme of compromise and

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** D.S. Jagan…
- **Respondents:** Tirupur Plaza…; A.R.Ramasubramania…

## Timeline

- **2006-02-15 — Incorporation of…**: M/s. Tirupur Plaza Hotel Private Limited was…
- **2021-01-01 — Initiation…**: Small Industries Development Bank of India (SIDBI) filed a petition under Section 7 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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