# Approval of Resolution Plan - Virgo Cements Limited

> NCLT judgment dated 2025-03-28. Citation: TCN-2025-NCLT-01029. The case involves an application for approval of a resolution plan for Virgo Cements Limited, a…

- **Court:** NCLT
- **Order date:** 28 Mar 2025
- **Citation:** TCN-2025-NCLT-01029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/approval-of-resolution-plan-virgo-cements-limited-5b622992

## Summary

### Background

The case involves an application for approval of a resolution plan for Virgo Cements Limited, a Corporate Debtor, under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by Punjab National Bank under Section 7 of the IBC. Kannan Tiruvengadam was appointed as the Resolution Professional (RP).

## Facts

Punjab National Bank filed an application under Section 7 of the IBC for initiation of CIRP against Virgo Cements Limited, which was admitted on 11.12.2023.

Kannan Tiruvengadam was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) on 18.01.2024.

The Committee of Creditors (CoC) was constituted on 09.01.2024, with Punjab National Bank holding 78.07% and Indian Bank holding 21.93% of the voting share.

PRAG India submitted a resolution plan that was approved by the CoC with 100% voting share.

The Resolution Plan provides for payment of CIRP costs, financial creditors, operational creditors, workmen and employee dues, and shareholders.

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## Issues and analysis

### Issue 1: Whether the resolution plan …

**Ratio:** The resolution plan must meet the requirements of Section 30(2) of the IBC, including

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**Reasoning:** The Tribunal examined the resolution plan and found that it provides for the payment of

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**Interpretation:** Section 30(2) of the IBC sets out the mandatory requirements for a resolution

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**Application:** The Tribunal applied Section 30(2) of the IBC to the resolution plan and found

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** Punjab National…; Kannan Tiruvengada…
- **Respondents:** Virgo Cements…
- **Other parties:** Indian…
- **Advocates:** R. Bane…; Rajarshi Ba…; +1 more

## Timeline

- **2023-12-11 — Initiation…**: CIRP initiated against…
- **2024-01-18 — Appointment…**: Kannan Tiruvengadam confirmed…

## 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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