2026 Supreme(Online)(NCLT) 2162

NATIONAL COMPANY LAW TRIBUNAL
Khetrabasi Biswal, MEMBER (JUDICIAL), Kaushalendra Kumar Singh, MEMBER (TECHNICAL)
DEEPANKUR SHARMA VS
IA(IBC)/1683/(CH)/2023 | CP(IB) No. 449/Chd/Pb/2019

A resolution plan under the Insolvency and Bankruptcy Code must comply with statutory requirements under Section 30(2) and Regulation 38, and the commercial wisdom of the Committee of Creditors is not subject to judicial review.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 30(2), 30(6), 31, 53, and 66 - The National Company Law Tribunal Rules, 2016 - Rule 11 - IBBI (CIRP of the Corporate Debtor) Regulations, 2016 - Regulations 38, 39(4) - Companies Act, 2013 - Income Tax Act, 1961 - Goods and Services Tax Act, 2017 - Industrial Disputes Act, 1947 - Labour Laws. (Paras 1, 6, 9, 10, 12)

(B) Resolution Plan - Approval - The Tribunal examined the Resolution Plan approved by the COC with 80.63% voting share, ensuring compliance with Section 30(2) and Regulation 38 of the CIRP Regulations. The plan provided for CIRP costs, payments to dissenting financial creditors and operational creditors as per Section 53 liquidation value waterfall, management and supervision of the corporate debtor, and did not contravene any laws. (Paras 3, 6, 7)

(C) Commercial Wisdom of COC - Not to be interfered with - The Tribunal noted that the COC approved the plan with requisite majority and the commercial wisdom of the COC is not to be interfered with by the Tribunal. (Para 3)

(D) Extinguishment of Unpaid Claims - As settled in Ghanshyam Mishra and Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited and Ors., all claims not included in the resolution plan stand extinguished, allowing the resolution applicant to start on a clean slate. (Para 12.1) (E) Relief and Concessions - The Tribunal considered reliefs sought by the SRA, directing them to approach concerned statutory authorities for concessions like tax exemptions, waiver of penalties, and renewal of licenses, while clarifying that non-grant of such reliefs shall not impede the implementation of the plan. (Paras 10, 12.3-12.5)

Facts of the case:
The Corporate Debtor, Vishal Rice Exports Pvt. Ltd., was admitted into CIRP under Section 9 of the IBC on 12.10.2022. The Resolution Professional filed an application under Section 30(6) seeking approval of the Resolution Plan submitted by M/s Kasturi Lal Ashok Kumar, which was approved by the COC with 80.63% voting share. The plan value was Rs. 1,62,00,000 against total admitted claims of Rs. 14,39,83,495.93. The plan provided for payments to stakeholders within 36 days of approval. The Tribunal also considered pending applications regarding claims of the Assistant Commissioner of State Tax and EPFO.

Findings of Court:
The Tribunal found the Resolution Plan compliant with all statutory requirements under Section 30(2) of the IBC and Regulation 38 of the CIRP Regulations. It approved the plan subject to the directions regarding the claims of the Assistant Commissioner of State Tax and EPFO. The Tribunal also clarified that unpaid liabilities and claims not filed with the RP shall stand extinguished, and the SRA shall approach concerned authorities for specific reliefs.

Issues: The main issues were whether the Resolution Plan complied with the requirements of Section 30(2) of the IBC and Regulation 38 of the CIRP Regulations, and how the pending claims of statutory authorities and reliefs sought by the SRA should be dealt with.

Ratio Decidendi: The court ruled that the Resolution Plan must meet the statutory requirements under Section 30(2) and Regulation 38, including payment of CIRP costs, minimum payments to dissenting creditors and operational creditors as per Section 53, management provisions, and non-contravention of laws. The commercial wisdom of the COC is not to be interfered with. Unpaid claims stand extinguished in line with the Supreme Court's decision in Ghanshyam Mishra.

Result: Application allowed and disposed of.

Table of Content
1. introduction and background of the application for approval of the resolution plan. (Para 1 , 2)
2. tribunal's preliminary examination and directions regarding pending claims of statutory authorities. (Para 3 , 4 , 5)
3. statutory requirements under section 30(2) and regulation 38 examined and found compliant. (Para 6 , 7)
4. evaluation of sra's expertise, reliefs sought, and treatment of unpaid liabilities. (Para 8 , 9 , 10 , 11 , 12)
5. final order approving the resolution plan and disposal of the application. (Para 13 , 14)

MR. KAUSHALENDRA KUMAR SINGH, MEMBER (TECHNICAL)

Present:-

For the Applicant/RP : Mr. Vaibhav Sahni, Advocate Ms. Swati Vashisth, Advocate Mr. Deepankur Sharma, RP in Person ORDER

1. The present Application has been filed on 25.06.2023 by Mr. Deepankur Sharma, Interim Resolution Professional/ Acting Resolution Professional (hereinafter referred to as the “Applicant”) under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “Code” or “IBC”), seeking approval of the Resolution Plan of M/s Kasturi Lal Ashok Kumar (hereinafter referred to as the “Successful Resolution Applicant” or “SRA”), in respect of Vishal Rice Exports Pvt. Ltd. (hereinafter referred to as the “Corporate Debtor”) which has been approved by the Committee of Creditors (hereinafter referred to as the “COC”) in the

11th Meeting dated 15.05.2023 with 80.63% voting share.

2. The averments made by the Applicant/Resolution Professional in the present application and as presented by the Ld. Counsel are summarized as under:-

i. The Corporate Debtor is a private limited company registered under the erstwhile Companies Act, 1956 and incorporated on 26.02.2008 having its registered office is at Super Market, Samana, Punjab. It has been engaged in the business of Rice Mill having its plant at Village Tulewal, Tehsil Samana, District Patiala, Punjab-

147101. It offered products to leading global Rice brands.

ii. The Corporate Debtor was admitted in the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Code on 12.10.2022. Mr. Deepankur Sharma was appointed as Interim Resolution Professional (IRP) for the Corporate Debtor by this Tribunal vide order dated 12.10.2022.

iii. The Constitution of the COC and the voting share of the respective Members has been as under:-

iv. As against the total claim received at Rs. 14,91,34,586.21/-, the IRP had admitted the claim to the extent of Rs. 14,39,83,495.93/-

v. Pursuant to publication of Form G for inviting of Expression of Interest (EOI) on 10.12.2022 in the course of the CIRP, 4 EOIs were received from Prospective Resolution Applicants (PRAs). After perusing the documents submitted by them, the Applicant published a provisional list of Prospective Resolution Applicant on 03.01.2023 consisting of one eligible Prospective Resolution Applicant and three ineligible PRAs. Thereafter, the Applicant published the Final List of prospective resolution applicants in the matter of the Corporate Debtor on 13.01.2023 consisting of one eligible prospective resolution applicant and three ineligible prospective Resolution Applicant. The Applicant received only one resolution plan from the prospective resolution applicant which was discussed by the members of COC along with the Resolution applicant in several COC meetings i.e. 6th 7th, 8th, 9th and 10th COC meetings. RP has raised few clarifications and observation on the plan which was shared with the prospective resolution applicant. On which the Resolution Applicant submitted a Revised Resolution Plan. The Resolution Applicant in addition to the Resolution Plan only elaborated the "Treatment of the Personal Guarantor of the Corporate Debtor and Treatment of Government Dues in the scenario of additional claim admitted by the Adjudicating Authority or RP after approval of the Resolution Plan. The CoC in its commercial wisdom approved the revised resolution plan submitted by M/s Kasturi Lal Ashok Kumar (Resolution App

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