# In the matter of SIP Industries Limited IA(IBC)-69(CHE)-2022 in IBA-709-2019

> NCLT judgment dated 2022-04-25. Citation: TCN-2022-NCLT-04921. An application was filed under Section 7 of IBC, 2016 by a Financial Creditor, M/s. Alchemist…

- **Court:** NCLT
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-NCLT-04921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-ii-che/sip-industries-limited-iaibc-69che-2022-in-iba-709-2019-b7d169df

## Summary

### Background

An application was filed under Section 7 of IBC, 2016 by a Financial Creditor, M/s. Alchemist Asset Reconstruction Company Limited, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. SIP Industries Limited. Mr. Porselvam Govindasamy was appointed as Interim Resolution Professional (IRP).

## Facts

An application was filed under Section 7 of IBC, 2016 by Alchemist Asset Reconstruction Company Limited.

Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. SIP Industries Limited.

Mr. Porselvam Govindasamy was appointed as Interim Resolution Professional (IRP).

The IRP received only one claim from an Operational Creditor, NSDL.

The sole CoC member opined to liquidate the Corporate Debtor.

An application for extension of CIRP was filed and ordered.

The applicant herein was appointed as the Resolution Professional.

The applicant obtained an order of exclusion of 60 days from the CIRP period due to the Covid-19 lockdown.

The Resolution Plan submitted by Mr. Arularasan was approved with 100% majority of the CoC.

…

## Issues and analysis

### Issue 1: Whether the Resolution Plan meets the …

**Ratio:** The Resolution Plan must comply with Section 30(2) of the IBC, 2016, which includes

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**Reasoning:** The Adjudicating Authority is duty-bound to examine the Resolution Plan within the

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**Interpretation:** The Resolution Plan must adhere to the mandatory compliance requirements under

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**Application:** The Resolution Plan was found to be in compliance with Section 30(2) of the

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Chitra Perinkulam…
- **Respondents:** M/s. SIP Industrie…
- **Other parties:** M/s. Alchemist…; Porselvam…; +1 more
- **Advocates:** Avinash Krishnan…; Jerin Asher…; +1 more

## Timeline

- **30.08.2019 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) initiated against M/s. SIP Industries…
- **07.09.2019 — Public Annou…**: IRP caused public announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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