# K Sashidhar Vs Indian Overseas Bank & Ors Civil Appeal No. 10673-2018 with CA No. 10719 -2018 CA No. 10971 -2018 and SLP (C) No. 29181

> SC judgment dated 2019-02-05. Citation: TCN-2019-SC-00094. The case involves appeals against a common judgment and order by the National Company Law Appellate…

- **Court:** SC
- **Order date:** 5 Feb 2019
- **Citation:** TCN-2019-SC-00094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/k-sashidhar-vs-indian-overseas-bank-ors-civil-appeal-no-10673-2018-with-ca-no-10-075b28fe

## Summary

### Background

The case involves appeals against a common judgment and order by the National Company Law Appellate Tribunal (NCLAT) concerning insolvency resolution processes for Kamineni Steel & Power India Pvt. Ltd. (KS&PIPL) and Innoventive Industries Ltd. (IIL). The NCLAT affirmed the rejection of IIL's resolution plan and directed its liquidation, while reversing the approval of KS&PIPL's resolution plan and remanding it for liquidation. The core issue is whether a resolution plan requires approval by at least 75% of the financial creditors' voting share, as mandated by Section 30(4) of the Insolvency and Bankruptcy Code (I&B Code).

## Facts

Kamineni Steel & Power India Pvt. Ltd. (KS&PIPL) was incorporated in 2008 and faced financial difficulties, leading to a BIFR application in 2016, which abated. A CIRP petition was admitted in 2017. The CoC meetings followed, with various resolution plans proposed and considered. Ultimately, the resolution plan received only 55.73% approval from the CoC. Indian Overseas Bank, holding 15.15% voting share, rejected the plan. NCLT Hyderabad approved the resolution plan, but NCLAT reversed this decision. Innoventive Industries Ltd. (IIL) faced losses and proposed a Corporate Debt Restructuring (CDR) in 2013. ICICI Bank filed an I&B Code application in December 2016, admitted by NCLT Mumbai in January 2017. A resolution plan received 66.57% approval, falling

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## Issues and analysis

### Issue 1: Whether the requirement of approval of a resolution plan by a vote of not less than 75% of the …

**Ratio:** The requirement of a 75% voting share for approval of a resolution plan is mandatory

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**Reasoning:** The court reasoned that the word 'may' in Section 30(4) refers to the CoC's discretion to

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**Interpretation:** Section 30(4) mandates that a resolution plan must receive approval from at

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**Application:** In both KS&PIPL and IIL's cases, the resolution plans failed to achieve the

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## Parties

- **Judges:** A.M. KHAN…; Ajay Ra…
- **Appellants:** K. Sash…
- **Respondents:** Kamineni Steel…; Indian Overseas…
- **Other parties:** 7th Edition…; Percentage of…; +2 more

## Timeline

- **2008-10-20 — Incorporation o…**: Kamineni Steel & Power India Pvt. Ltd. (KS&PIPL) was incorporated as a private limited…
- **2013-03-30 — KS&PIPL Steel Division…**: The steel division of…

## 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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