# In the matter of Rahul Jain Vs. Rave Scans Pvt. Ltd. & Ors. Civil Appeal No. 7940-2019

> SC judgment dated 2019-11-08. Citation: TCN-2019-SC-00013. The resolution applicant, Rahul Jain, appealed against the NCLAT's decision modifying a resolution…

- **Court:** SC
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-SC-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/rahul-jain-vs-rave-scans-pvt-ltd-ors-civil-appeal-no-7940-2019-9af17578

## Summary

### Background

The resolution applicant, Rahul Jain, appealed against the NCLAT's decision modifying a resolution plan approved by the NCLT. The CIRP was initiated against Rave Scans Private Limited. Hero Fincorp Ltd., a financial creditor, challenged the resolution plan, alleging discrimination because it was offered a lower percentage of its admitted claim compared to other financial creditors. The NCLAT sided with Hero, leading Rahul Jain to appeal to the Supreme Court.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Rave Scans Private Limited. Rahul Jain, the resolution applicant, submitted a resolution plan that was initially approved by the NCLT on October 17, 2018. The liquidation value of the Corporate Debtor was ascertained as ₹36 crores, and the appellant offered ₹54 crores to revive the Corporate Debtor. Hero Fincorp Ltd., a financial creditor, challenged the resolution plan before the NCLAT, alleging discrimination because it was offered 32.34% of its admitted claim, while other financial creditors were offered 45%. The NCLAT modified the NCLT's order, leading to the appeal before the Supreme Court. The resolution applicant had noticed that Regulation 38 was amended on 5th October, 2018, but

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## Issues and analysis

### Issue 1: Whether the finding that the financial creditor was discriminated against, leading the NCLAT to …

**Ratio:** The principle of fairness in resolution plans requires that operational creditors' debts

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**Reasoning:** The Supreme Court reasoned that the resolution process began before the amendment to

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**Interpretation:** Section 30 of the IBC outlines the duties of the resolution professional and

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**Application:** The court applied the principle of fairness and the provisions of Section 30

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## Parties

- **Judges:** S. Ravindr…; Arun Mi…
- **Appellants:** Rahul…
- **Respondents:** Rave Scans…; RAVE SCANS PVT.…

## Timeline

- **2017-01-25 — CIRP Init…**: CIRP was initiated against the Corporate…
- **2018-10-17 — NCLT App…**: The NCLT approved the revised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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