Case Law Details
H R Bearing Corporation Vs Teknik Plant and Machinery MFG. Co. Pvt. Ltd. (NCLT Mumbai)
National Company Law Tribunal (NCLT) Mumbai recently adjudicated on the approval of a resolution plan submitted by Mrs. Archana Pankaj Mahale, the proprietor of M/s. Siddhanath Enterprises, for Teknik Plant and Machinery MFG. Co. Pvt. Ltd. The case unfolded under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), initiated when Teknik Plant and Machinery MFG. Co. Pvt. Ltd. (referred to as the “Corporate Debtor”) was admitted into Corporate Insolvency Resolution Process (CIRP) on February 11, 2022, following an application under section 9 of the Code.
The Resolution Professional (RP), appointed initially as Interim Resolution Professional (IRP), managed the process from the outset. The IRP issued the public announcement inviting claims from creditors, and subsequently, after collating and verifying the claims, constituted the Committee of Creditors (CoC) consisting solely of Indian Bank, the financial creditor holding the entirety of the voting share.
Throughout the process, various meetings of the CoC were convened to discuss the resolution of Teknik Plant and Machinery, including attempts at liquidation due to initial challenges with cooperation from stakeholders. Eventually, the CoC decided on liquidation, prompting the IRP to file for liquidation under section 33(3) of the IBC. However, the tribunal intervened, emphasizing the need to explore resolution options before resorting to liquidation, thereby reinstating the resolution process.
Following this, the IRP published Form-G, inviting Expression of Interests (EoI) from prospective resolution applicants. Mrs. Archana Pankaj Mahale emerged as the sole applicant, submitting her proposal within the stipulated timeline and meeting the eligibility criteria as per section 29A of the IBC. Her resolution plan was subsequently evaluated and improved upon request by the CoC, leading to its final approval on October 23, 2023.
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