# In the matter of Unique Sugar Ltd.

> NCLT judgment dated 2024-10-16. Citation: TCN-2024-NCLT-00405. The Interlocutory Application was filed by Mr. Kailash Shah, the Resolution Professional of…

- **Court:** NCLT
- **Order date:** 16 Oct 2024
- **Citation:** TCN-2024-NCLT-00405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unique-sugar-ltd-6237c812

## 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 on 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. Mr. Kailash Shah replaced Mr. Javadsha Vasa as the Resolution Professional (RP). The RP published Form G inviting Expression of Interest (EoI). Rawalwasia Yarn Dyeing Private Limited submitted a Resolution Plan, which was put before the CoC in its 7th meeting held on 06.12.2019. The average

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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)(b) of the Code mandates that the resolution plan provides for the payment

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**Reasoning:** The Adjudicating Authority observed that the resolution plan does not comply with Section

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**Interpretation:** Section 30(2)(b) is interpreted to mean that operational creditors must receive

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**Application:** In this case, since some operational creditors were being paid less than their

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## Parties

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

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB)No. 128/MB/C-II/20…
- **2019-02-28 — CIRP Init…**: CIRP initiated against the Corporate Debtor and Mr. Javadsha Vasa appointed as the…

## 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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