# In the matter of Ramkrishna Forgings Limited Vs. Ravindra Loonkar, RP
of ACIL Limited & Anr.

> SC judgment dated 2023-11-21. Citation: TCN-2023-SC-00009. The case involves an appeal against the National Company Law Appellate Tribunal's (NCLAT) decision,…

- **Court:** SC
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-SC-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ramkrishna-forgings-limited-vs-ravindra-loonkar-rp-of-acil-limited-anr-74cea770

## Summary

### Background

The case involves an appeal against the National Company Law Appellate Tribunal's (NCLAT) decision, which upheld the National Company Law Tribunal's (NCLT) order to re-evaluate the assets of ACIL Limited, a corporate debtor undergoing the Corporate Insolvency Resolution Process (CIRP). The appellant, Ramkrishna Forgings Limited, had submitted a resolution plan that was approved by the Committee of Creditors (CoC). The NCLT, however, directed the Official Liquidator (OL) to re-evaluate ACIL's assets, leading to the appeal. The core issue revolves around the extent of the NCLT's jurisdiction to interfere with the CoC's commercial wisdom in approving a resolution plan.

## Facts

ACIL Limited, a manufacturer of precision engineering and automobile components, underwent CIRP initiated by IDBI Bank Ltd. Ravindra Loonkar was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional (RP). The total claim filed was approximately Rupees one thousand eight hundred and thirty crores, with an admitted claim of Rupees one thousand seven hundred and eighty-two crores. Ramkrishna Forgings Limited, the appellant, submitted a resolution plan on 11.04.2019, offering Rupees seventy-four crores to stakeholders. This plan underwent several revisions, with the final plan submitted on 05.08.2019, increasing the total payout to Rupees one hundred twenty-nine and a half crores. The final plan was approved by the CoC on

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## Issues and analysis

### Issue 1: Whether the NCLT exceeded its jurisdiction under the Insolvency and Bankruptcy Code by directing a …

**Ratio:** The NCLT's jurisdiction is limited to ensuring that the resolution plan complies with the

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**Reasoning:** The Supreme Court emphasized that the CoC is the decision-maker and its decision should

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**Interpretation:** The IBC grants significant autonomy to the CoC in the resolution process. The

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**Application:** In this case, the NCLT's direction for re-evaluation was deemed an overreach of

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## Parties

- **Judges:** Ahsanuddin…; VIKRAM…
- **Appellants:** RAMKRISHNA…
- **Respondents:** ACIL LI…; RAVINDRA L…

## Timeline

- **2018-10-16 — NCLT Ord…**: NCLT appointed the…
- **2019-04-11 — First Resolut…**: Appellant submitted its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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