# 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-04902. 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-04902
- **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-201-6e34c8f6

## 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 IBC. The resolution plan was submitted by RARE Asset Reconstruction Ltd.

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Veekay Polycoats Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was triggered due to the corporate debtor's inability to service its liabilities, attributed to a shortfall in cash flows from reduced margins and declining operations. Vivek Raheja was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcement was made on 07.03.2019, inviting claims from creditors. The Committee of Creditors (CoC) was constituted on 28.03.2019, comprising six financial creditors, with State Bank of India holding the majority voting share (78.33%). RARE Asset Reconstruction Ltd. submitted a resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by RARE Asset Reconstruction Ltd. meets the requirements of …

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

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**Reasoning:** The Adjudicating Authority examined the Resolution Plan to ensure it complied with the

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**Interpretation:** The interpretation of Sections 30 and 31 requires the Adjudicating Authority to

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**Application:** The Adjudicating Authority found that the Resolution Plan was in accordance

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## Parties

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

## 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 into…

## 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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