Miller Trader Pvt. Ltd. Vs Dunlop Polymers Pvt. Ltd. (NCLT Bengaluru)
The National Company Law Tribunal (NCLT), Bengaluru Bench, considered an application filed by the Resolution Professional under Section 30(6) read with Section 31 of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan submitted by the Successful Resolution Applicant (SRA), Mr. Saikam Sivachaitanya, for the Corporate Debtor. The Resolution Plan had been approved by the Committee of Creditors (CoC) with 97.94% voting share in its meeting held on 11.06.2024.
The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 25.06.2019 following a default of ₹48,46,699. During the CIRP, disputes arose regarding the constitution of the CoC, leading to proceedings before the Karnataka High Court and subsequent reconstitution of the CoC by the Tribunal through an order dated 23.01.2024. The reconstituted CoC consisted of Canara Bank with a 97.94% voting share and Swapanli Trade and Commerce Private Limited with a 2.06% voting share.
Registered valuers assessed the Corporate Debtor, arriving at an average fair value of ₹21.61 crore and an average liquidation value of ₹16.16 crore. The Successful Resolution Applicant, who was found eligible under Section 29A of the Code, proposed a Resolution Plan with a total resolution amount of ₹17.25 crore. The funding was proposed through fresh equity of ₹2 crore and quasi-equity of ₹15.25 crore. The SRA also furnished a performance security of ₹3.45 crore in compliance with Regulation 36B(4A).
