# In the matter of Unique Sugar Ltd.

> NCLT judgment dated 2024-10-16. Citation: TCN-2024-NCLT-00417. The Interlocutory Application was filed by Mr. Kailash Shah, the Resolution Professional of…

- **Court:** NCLT
- **Order date:** 16 Oct 2024
- **Citation:** TCN-2024-NCLT-00417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unique-sugar-ltd-3a1eda1e

## Summary

### Background

The Interlocutory Application was filed by Mr. Kailash Shah, the Resolution Professional of Unique Sugars Limited, seeking approval of the Resolution Plan submitted by Rawalwasia Yarn Dyeing Private Limited under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Unique Sugar Ltd. by Agarwal Coal Corporation Pvt. Ltd., the Operational Creditor, under Section 9 of the Code. The Committee of Creditors (CoC) was formed, consisting of operational creditors, a representative of workmen, and a representative of employees, as the Corporate Debtor had no financial creditors. The Resolution Plan was approved by 67.18% of the CoC in its 7th meeting held on 06.12.2019.

## Facts

Agarwal Coal Corporation Pvt. Ltd., an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Unique Sugar Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated vide order dated 28.02.2019, and Mr. Javadsha Vasa was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), consisting of operational creditors, a representative of workmen, and a representative of employees. The 3rd CoC meeting held on 31.07.2019 decided to seek extension of the CIRP. The Tribunal allowed the extension vide order dated 09.09.2019, setting the last date of CIRP as 01.12.2019. In the 4th CoC meeting held on 21.08.2019, Mr. Kailash Shah replaced Mr. Javadsha Vasa as the

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Rawalwasia Yarn Dyeing Private Limited complies with the …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 31,

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**Reasoning:** The Adjudicating Authority observed that the resolution plan was approved by a voting

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**Interpretation:** Section 30(2) aims to protect the interests of operational creditors by

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**Application:** In this case, since the resolution plan proposed payments to some operational

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Kailash…
- **Respondents:** Unique Sug…; Agarwal Coal…

## Timeline

- **2019-02-28 — CIRP Init…**: Tribunal initiated CIRP against the Corporate Debtor and appointed Mr. Javadsha Vasa as…
- **2019-07-31 — CoC Meet…**: In the 3rd CoC meeting, members…

## 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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