# DBS Bank Limited Singapore vs. Ruchi Soya Industries Limited And Another [Civil Appeal No. 9133 of 2019]

> SC judgment dated 2024-01-03. Citation: TCN-2024-SC-00109. The case involves a dispute over the distribution of proceeds in a resolution plan under the…

- **Court:** SC
- **Order date:** 3 Jan 2024
- **Citation:** TCN-2024-SC-00109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/dbs-bank-limited-singapore-vs-ruchi-soya-industries-limited-and-another-bf6878a7

## Summary

### Background

The case involves a dispute over the distribution of proceeds in a resolution plan under the Insolvency and Bankruptcy Code (IBC). DBS Bank Limited Singapore, the appellant, is a dissenting financial creditor of Ruchi Soya Industries Limited, the corporate debtor. DBS Bank held a sole and exclusive first charge over certain immovable and fixed assets of the Corporate Debtor. Corporate Insolvency Resolution Process (CIRP) was initiated against Ruchi Soya Industries Limited on 15.12.2017. Patanjali Ayurvedic Limited submitted a resolution plan for Rs. 4134,00,00,000 on 20.03.2019. DBS Bank, being a dissenting creditor, challenged the distribution mechanism of the resolution plan, arguing that it should receive a higher amount due to its superior security interest. The

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## Facts

DBS Bank Limited Singapore extended financial debt of around USD 50,000,000 to Ruchi Soya Industries Limited. This debt was secured by a first charge over immovable and fixed assets of Ruchi Soya in multiple locations. On 15.12.2017, CIRP was initiated against Ruchi Soya. DBS Bank submitted a claim of Rs. 242,96,00,000, which was admitted by the Resolution Professional. On 20.03.2019, Patanjali Ayurvedic Limited submitted a resolution plan for Rs. 4134,00,00,000. DBS Bank informed the Committee of Creditors (CoC) on 12.04.2019, about its superior security interest. The CoC approved pari passu distribution of the resolution plan proceeds on 23.04.2019. DBS Bank voted against the resolution plan on 30.04.2019, becoming a dissenting financial creditor. The NCLT approved

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## Issues and analysis

### Issue 1: Whether Section 30(2)(b)(ii) of the Insolvency and Bankruptcy Code, 2016, as amended in 2019, …

**Ratio:** The dissenting financial creditor is entitled to payment, which should not be less than

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**Reasoning:** The court refers to several decisions, including Committee of Creditors of Essar Steel

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**Interpretation:** Section 30(2)(b)(ii) forfends the dissenting financial creditor from settling

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**Application:** The court states that the dissenting financial creditor is entitled to receive

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## Parties

- **Judges:** SANJIV K…; S.V.N. B…
- **Appellants:** DBS BANK LIMITED…
- **Respondents:** Ruchi Soya…
- **Other parties:** 7th Edition…; Secured Cr…; +9 more

## Timeline

- **2017-12-15 — CIRP Init…**: Corporate Insolvency Resolution Process was…
- **2019-03-20 — Resolution Plan…**: Patanjali Ayurvedic Limited submitted a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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