# In the matter of Topknit Processing Mill Private Limited IA-IB-1286-2020 & IA(IBC)-643(CHE)-2021 in IBA-902-2019

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02139. The case pertains to IA(IBC)/643(CHE)/2021 filed in IBA/902/2019, along with IA/IB/1286/2020 in…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topknit-processing-mill-private-limited-ia-ib-1286-2020-iaibc-643che-2021-in-iba-d288f4b2

## Summary

### Background

The case pertains to IA(IBC)/643(CHE)/2021 filed in IBA/902/2019, along with IA/IB/1286/2020 in IBA/902/2019, before the National Company Law Tribunal, Division Bench - II, Chennai. The initial application under Section 9 of IBC, 2016 was filed by an Operational Creditor, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Topknit Processing Mill Private Limited. The applicant was appointed as the Interim Resolution Professional (IRP) and later continued as the Resolution Professional (RP). The RP sought approval of the Resolution Plan submitted by the successful Resolution Applicant. IA/IB/1286/2020 was filed by the RP seeking exclusion of the lockdown period and extension of CIRP for 60 days, which was

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## Facts

M/s. Topknit Processing Mill Private Limited faced Corporate Insolvency Resolution Process (CIRP) initiated by an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. A Resolution Professional (RP) was appointed who then sought approval for a Resolution Plan. The Corporate Debtor is an MSME. The RP conducted 19 CoC meetings. The Fair Value of the company was arrived at Rs.11.38 Crore and the Liquidation value at Rs.9.78 Crore. The CoC approved the Resolution Plan with 100% voting share in its 10th meeting held on 29.06.2021. The Resolution Applicant proposed to pay Rs. 10.11 Crore, including Rs. 46.25 Lakh as margin money. The Resolution Plan ensures the revival and continuity of the business. The Resolution Applicant will pay 60.49%

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by the Resolution Applicant complies with the requirements of …

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

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**Reasoning:** The Adjudicating Authority reviewed the Resolution Plan and the certificate issued by the

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

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**Application:** The Resolution Plan was found to comply with Section 30(2) as it provides for

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** A.R.Ramasubramania…
- **Respondents:** Topknit Processing…

## Timeline

- **2019-11-21 — Initiation…**: Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against…
- **2019-12-02 — Public Annou…**: IRP caused public announcement in 'The…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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