# In the matter of Veekay Polycoats Ltd. CA No.297 & 956 (PB)-2020 & IA No. 3673(PB)2022 in CP (IB) No.1291(PB) 2018

> NCLT judgment dated 2023-01-25. Citation: TCN-2023-NCLT-04909. The case involves an application under sections 30(6) and 31(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Jan 2023
- **Citation:** TCN-2023-NCLT-04909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/veekay-polycoats-ltd-ca-no297-956-pb-2020-ia-no-3673pb2022-in-cp-ib-no1291pb-201-475b967b

## Summary

### Background

The case involves an application under sections 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016, read with regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for the approval of a Resolution Plan for Veekay Polycoats Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by State Bank of India under Section 7 of the Code. The Resolution Professional (RP) sought approval for the resolution plan submitted by RARE Asset Reconstruction Ltd.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Veekay Polycoats Limited following a petition filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. Vivek Raheja was appointed as the Resolution Professional (RP). Public announcement was made on 07.03.2019. The Committee of Creditors (CoC) was constituted on 28.03.2019 with six financial creditors. RARE Asset Reconstruction Ltd. submitted a resolution plan that was approved by the CoC with a 78.33% voting share. The fair value of the corporate debtor was assessed at Rs. 118.18 Crores, and the liquidation value at Rs. 61.96 Crores. An objection was raised by Bank of Baroda, which was rejected. The Employees' Provident Fund Organization (EPFO) filed an

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by RARE Asset Reconstruction Ltd. complies with the …

**Ratio:** Sections 30 and 31 of the IBC, 2016, along with regulations 38 and 39 of the IBBI

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan to ensure it met the statutory

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**Interpretation:** The IBC, 2016, aims to provide a framework for the resolution of corporate

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**Application:** The Resolution Plan was found to be in accordance with Sections 30 and 31 of

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** State Bank of…
- **Respondents:** Veekay Polycoats…

## Timeline

- **2018-01-01 — CP (IB) No.1291…**: Underlying Company Petition CP (IB) No.1291(PB)2018 filed by State Bank of India under…
- **2019-03-01 — Admission…**: The Corporate Debtor was admitted by this Adjudicating Authority vide its order dated…

## 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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