# In the matter of Vinayak Rathi Steels Rolling Mills Pvt. Ltd. IA(I.B.C)-2946 & 4103-2021 in C.P. IB 1295-ND-2019

> NCLT judgment dated 2022-04-21. Citation: TCN-2022-NCLT-03132. The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against Vinayak…

- **Court:** NCLT
- **Order date:** 21 Apr 2022
- **Citation:** TCN-2022-NCLT-03132
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vinayak-rathi-steels-rolling-mills-pvt-ltd-iaibc-2946-4103-2021-in-cp-ib-1295-nd-b5753ab5

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against Vinayak Rathi Steels Rolling Mills Pvt. Ltd. The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by the financial creditor, Jammu & Kashmir Bank. The CIRP commenced on 17.06.2020. After the public announcement of CIRP, the Resolution Professional (RP) received 6 claims, including one from the financial creditor and five from operational creditors. The Committee of Creditors (CoC) consisted of only the financial creditor. The RP appointed valuers to determine the fair value and liquidation value of the corporate debtor's assets. The CoC approved the publication of Form G, inviting Expressions of Interest (EoI). After several iterations, the CoC

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## Facts

Vinayak Rathi Steels Rolling Mills Pvt. Ltd. (the 'Corporate Debtor') underwent Corporate Insolvency Resolution Process (CIRP) initiated by Jammu & Kashmir Bank (the 'Financial Creditor') under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP commenced on 17.06.2020. The Financial Creditor was the sole member of the Committee of Creditors (CoC). The Resolution Professional (RP) received claims from the Financial Creditor and five Operational Creditors. M/s Rajatmetaal Polychem Private Limited (an 'Operational Creditor') filed a claim of Rs. 1,54,64,926/-, including a principal amount of Rs. 93,00,564/- and interest of Rs. 61,00,000/-. The RP admitted the principal amount but rejected the interest. The CoC approved a resolution plan submitted by Mr.

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## Issues and analysis

### Issue 1: Whether the Resolution Plan complies with the requirements of Section 30(2) of the Insolvency and …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016 specifies the requirements that

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**Reasoning:** The court examined the resolution plan to determine whether it complied with the

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**Interpretation:** Section 30(2) of the IBC mandates that a resolution plan must provide for the

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**Application:** In this case, the resolution plan did not provide for any payment to

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** Jammu & Kashmir…
- **Respondents:** Vinayak Rathi…

## Timeline

- **1979-10-17 — Incorpor…**: Corporate Debtor was originally…
- **2008-01-01 — Name Cha…**: Good Luck Sales Private Limited changed its name to Vinayak Rathi Steels Rolling Mills…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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