In this case, the operational creditor filed an application under Section 9 of the IBC, 2016 for initiation of CIRP against the corporate debtor, i.e., Durga Enterprises. The Adjudicating Authority admitted the said application and, a Resolution Professional was appointed. The resolution plan submitted by the resolution applicant was approved by 92.65% of voting by members of Committee of Creditors.
The NCLT observed that in terms of said plan apart from upfront payment to its creditors, deferred payment from recovery of outstanding receivables of Government departments and market or fresh contribution of the resolution applicant was to be paid to creditors. Further, the resolution applicant will provide funds to the corporate debtor for building infrastructure of factory and for working capital requirements.
Since, resolution plan complied with all provisions of Insolvency & Bankruptcy Code and regulations and did not contravene any provisions of law for time being in force. Hence, plea of the operational creditor was admitted.
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