# In the matter of Vistar Metal Industries Private Limited IA No. 192 of 2022 In IA No. 2623 of 2021
In CP (IB) No. 1331-(MB) 2017

> NCLT judgment dated 2023-01-06. Citation: TCN-2023-NCLT-05171. The case involves an application filed by Mr. Vipin Agarwal, the promoter of the Corporate…

- **Court:** NCLT
- **Order date:** 6 Jan 2023
- **Citation:** TCN-2023-NCLT-05171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vistar-metal-industries-private-limited-ia-no-192-of-2022-in-ia-no-2623-of-2021-68ef2cbd

## Summary

### Background

The case involves an application filed by Mr. Vipin Agarwal, the promoter of the Corporate Debtor, seeking intervention in I.A. No. 2623 of 2021, which was filed by the Resolution Professional (RP) for the initiation of liquidation of the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on October 14, 2019. The Committee of Creditors (CoC) was constituted, and resolution plans were rejected due to being below the liquidation value. The CoC then resolved to initiate liquidation. The Applicant argues that as the suspended Director of a 'Medium' enterprise under the MSME Act, he is entitled to submit a resolution plan, especially since the initial valuation was outdated and instances of theft had eroded the Corporate

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## Facts

The Corporate Debtor was admitted into CIRP on October 14, 2019. Mr. Atul Jain was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed and later confirmed the RP. The 1st CoC Meeting was held on December 24, 2019, where two registered valuers were appointed. The present Respondent was appointed as the new RP on August 2, 2021, after the Covid-19 pandemic. Three resolution plans were rejected by the CoC on October 4, 2021, because they were below the liquidation value. The CoC resolved to initiate liquidation on October 23, 2021, and the Respondent filed I.A. No. 2623 of 2021 under Section 33 of the Code. The Applicant, the suspended Director, claims the Corporate Debtor is a 'Medium' enterprise under the MSME Act,

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## Issues and analysis

### Issue 1: Whether the Applicant, as the promoter of an MSME, has the right to propose a resolution plan …

**Ratio:** Section 240-A of the Code lays down that the provisions of clauses (c) and (h) of Section

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**Reasoning:** The court reasoned that since the Corporate Debtor holds the MSME registration

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**Interpretation:** The interpretation of Section 240-A is that it provides a relaxation for MSMEs

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**Application:** In this case, the Corporate Debtor is registered as an MSME, and the Applicant

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Vipin Ag…
- **Respondents:** Vistar Metal…; Sunil Kumar…

## Timeline

- **2019-10-14 — CIRP Admi…**: Corporate Debtor admitted into Corporate…
- **2019-12-24 — 1st CoC M…**: 1st CoC Meeting held, two…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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