# Approval of Resolution Plan - KGS Sugar and Infra Corporation Private Limited

> NCLT judgment dated 2025-10-01. Citation: TCN-2025-NCLT-01440. The case involves an application for approval of a resolution plan for KGS Sugar & Infra…

- **Court:** NCLT
- **Order date:** 1 Oct 2025
- **Citation:** TCN-2025-NCLT-01440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/approval-of-resolution-plan-kgs-sugar-and-infra-corporation-private-limited-6efd8a43

## Summary

### Background

The case involves an application for approval of a resolution plan for KGS Sugar & Infra Corporation Private Limited, a corporate debtor, submitted by Grainotch Industries Limited, the successful resolution applicant (SRA). An unsuccessful resolution applicant (URA), Consortium of Govindrao Sable, Shobha G. Sable & Pravin G. Sable, filed objections to the approval of the resolution plan, alleging irregularities in the evaluation process.

## Facts

KGS Sugar & Infra Corporation Private Limited was incorporated on 15.10.1998 and is engaged in the manufacturing and trading of sugar and its allied products.

The CIRP was initiated on 10.10.2019.

Mr. Balady Shetty was initially appointed as the Interim Resolution Professional (IRP).

Pankaj Sham Joshi was appointed as the Resolution Professional (RP) on 27.05.2020, replacing Mr. Balady Shetty.

Gangamai Industries and Construction Ltd.'s resolution plan was previously approved but failed to be implemented, leading to a re-run of the CIRP.

Grainotch Industries Limited (GIL) was declared the Successful Resolution Applicant (SRA) after approval by the Committee of Creditors (CoC) with 99.86% votes.

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## Issues and analysis

### Issue 1: Whether the CoC's decision to approve the resolution plan submitted by Grainotch Industries Limited …

**Ratio:** The commercial wisdom of the CoC is paramount and non-justiciable, as held in Committee

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**Reasoning:** The tribunal cannot interfere on merits with the commercial decision taken by the CoC,

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**Interpretation:** The Adjudicating Authority's role is limited to ensuring that the resolution

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**Application:** The tribunal found that the CoC had recorded its discussions regarding the

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## Parties

- **Judges:** Sushil Mahadeorao…; Prabhat…
- **Appellants:** Consortium of…; Canara…
- **Respondents:** KGS Sugar & Infra…; Pankaj Sham…; +2 more
- **Other parties:** Central Bank of…; Indian Overseas…; +5 more
- **Advocates:** Mustafa D…; Neha…; +11 more

## Timeline

- **15.10.1998 — Incorpor…**: KGS Sugar & Infra Corporation…
- **10.10.2019 — CIRP Init…**: The Corporate Insolvency…

## 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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