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2025 Supreme(Online)(NCLT) 315
NATIONAL COMPANY LAW TRIBUNAL
V.G Bisht, Retd. Hon’ble Member (Technical), Prabhat Kumar, Hon’ble Member (Judicial)
Modilal Dhanraj Pamecha – Appellant
Versus
Wellworth Finvest (India) Private Limited – Respondent
CP(IB) No.469/MB/2023
For the Applicant:Mr. Kunal Kanungo, Advocate
The court affirmatively ruled that a Resolution Plan approved by the requisite majority of creditors must be approved by the Adjudicating Authority unless it violates statutory requirements.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 30(6) - Approval of Resolution Plan - Application for approval of the resolution plan was filed by the Resolution Professional on behalf of the Committee of Creditors - The plan was approved by 100% of the voting share - Tribunal found that the Resolution Plan meets all requirements under the Code and its Regulations and therefore approved the plan. (Paras 22, 23)
(B) Adjudication of Resolution Plan - The adjudicating authority's role is limited to verifying compliance with the requirements of Section 30(2) of the Code after approval by requisite vote of creditors - Plans not complying with provisions of the Code may be rejected. (Para 21)
Facts of the case:
The Corporate Insolvency Resolution Process was initiated on an application filed by Kausar Textile Private Limited under Section 7 of the Code, appointing an Interim Resolution Professional to manage the process. A total of 5 meetings of the Committee of Creditors occurred and an expression of interest led to the selection of Wellworth Finvest (India) Private Limited as the Successful Resolution Applicant. (Paras 2-5)
Findings of Court:
The Resolution Plan has been found compliant with the IBC's requirements, allowing for payment to creditors and overseeing corporate management post-approval. (Paras 22, 23)
Issues: Whether the Resolution Plan adheres to the stipulations of Section 30 of the IBC, regarding the treatment of creditors and operational management following approval. (Paras 21-23)
Ratio Decidendi: The court ruled that once a resolution plan is approved by the requisite percentage of creditors, the Adjudicating Authority must accept it unless it contravenes statutory requirements, thereby ensuring a fair and structured resolution process. (Paras 21, 22)
Result: The Resolution Plan along with its Addendum has been approved, making it binding on all related parties.
| Table of Content |
|---|
| 1. application for approval of resolution plan filed. (Para 1 , 2) |
| 2. the role of the adjudicating authority in overseeing the plans. (Para 21) |
| 3. resolution plan approved based on stipulations of the ibc. (Para 22 , 23) |
ORDER
1. This Application has been filed on 26.07.2024 by the Resolution Professional (“RP/Applicant”) under Section 30 (6) of the Insolvency and Bankruptcy Code , 2016 (“Code”) on behalf of the Committee of Creditors (“CoC”) seeking approval of the Resolution Plan submitted by the Successful Resolution Applicant (“SRA”), Wellworth Finvest (India) Private Limited and approved by 100% of the voting share of the members of the CoC of the Corporate Debtor viz. Reward Real Estate Company Limited (“Corporate Debtor”).
Brief Facts :
2. The Corporate Insolvency Resolution Process (“CIRP”) of the Corporate Debtor was initiated vide an order dated 25.09.2023 of this Tribunal in C.P.(IB) 469 (MB)/2023 on an application filed by Kausar Textile Private Limited (“Financial Creditor”) under Section 7 of the Code.
3. Mr. Modilal Dhanraj Pamecha was appointed as Interim Resolution Professional (“IRP”). The IRP made a public announcement in the newspapers (in Mumbai) in Form-A on 09.12.2023 inviting the creditors to submit their claims on or before 21.12.2023. The IRP constituted the CoC based on the claims received by him on 27.01.2024 and the first meeting of the CoC was held on 06.01.2024, wherein the IRP was confirmed as the Resolution Professional.
4. The Applicant submits that till the date of filing of the present Application, a total of 5 (Five) CoC meetings have been held from time to time.
5. At the 1st CoC meeting held on 06.01.2024 , it was reported that the notice for initiating the CIRP was sent to various government C.P.(IB)/469(MB)2023 authorities. Additionally, emails were sent to the suspended directors of the Corporate Debtor on 07.12.2023 and 01.01.2024 requesting documents and information regarding the company’s operations.
6. Subsequently, upon verification of the claims, the CoC was reconstituted by the Applicant on 27.01.2024 with the following Unsecured Financial Creditors:
| Sr. No. Name of the Creditors Amount claimed & Percentage admitted (Rs.) Share (%) | |||
| UNSECURED FINANCIAL CREDITORS | |||
| 1. | Kausar Textile Private Limited | 64,17,76,093/- | 1.98% |
| 2. | Abhinandan Multitrade Private Limited | 2,74,17,16,431/- | 8.45% |
| 3. | Acrow Constructions Pvt. Ltd. | 3,79,772,596/- | 1.17% |
| 4. | Anukaran Consultancy Private Limited | 4,11,64,09,745/- | 12.69% |
| 5. | Amex Infrastructure Private Limited | 3,44,364,913/- | 1.06% |
| 6. | Bridge Infra Private Limited | 1,386,146,644/- | 4.27% |
| 7. | Charms Holding Private Limited | 97,43,06,863/- | 3.00% |
| 8. | Conart Conpro Private Limited | 1,12,27,64,709/- | 3.47% |
| 9. | Cranes Real Estate Private Limited | 34,44,48,938/- | 1.06% |
| 10. | Devika Trading Private Limited | 3,31,52,67,576/- | 10.22% |
| 11. | Eloquent Traders Private Limited | 34,57,57,491/- | 1.07% |
| 12. | Express Suitings Private Limited | 3,49,86,11,215/- | 10.78% |
| 13. | Heavy Steel Private Limited | 2,89,10,58,839/- | 8.91% |
| 14. | Kaushal Logistics Private Limited | 1,67,78,82,500/- | 5.17% |
| 15. Rajdeep Clothing and Advisory Private Limited | 1,07,81,88,646/- | 3.32% | |
| 16. Royal Compservices Private Limited | 56,05,49,735/- | 1.73% | |
| 17. Taban Real Estate Private Limited | 34,44,48,939/- | 1.06% | |
| 18. Tanvish Trading Private Lmited | 62,46,41,577/- | 1.93% | |
| 19. Bodal Conpro Private Limited | 62,79,06,108/- | 1.94% | |
| 20. Madhu Crimpers Private Limited | 34,43,64,913/- | 1.06% | |
| 21. | Ritu Multitrade Services Private Limited | 65,36,41,305/- | 2.01% |
| 22. Vignaharta Corrugators Private Limited | 2,37,12,97,020/- | 7.31% | |
| 23. Wellworth Apparels Private Limited | 2,05,68,79,888/- | 6.34% | |
| Total (A) | 32,44,22,02,683/- | 100% |
7. In the 2nd CoC meeting held on 02.02.2024, the Applicant further discussed the invitation for Expression of Interest (“EOI”) in Form G, the Request of Resolution Plans (“RFRP”) and the Evaluation Matrix. Also 2 valuers (“Registered Valuers”) were appointed as Valuers for "Land & Building. The Fair Market Value of the Corporate Debtor was determined to be Rs. 37,97,00,000/- (Thirty-Seven Crore Ninety-Seven Lakhs Only).The Liqu
