The court upheld a Resolution Plan under the Insolvency and Bankruptcy Code, affirming compliance with procedural requirements and emphasizing its viability for corporate revival.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 30(1), 30(2), 31(1) and Regulation 39(4) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - Resolution Plan approved following 100% votes by Committee of Creditors - Circular issued outlining conditions of the plan and post-approval procedures- The plan meets requirements of viability and feasibility for revival. (Paras 32, 36)

(B) Corporate Insolvency Resolution Process - Approval process - Adjudicating Authority's duty to ensure compliance with the Code and Regulations before sanctioning the plan. (Paras 32, 36)

Facts of the case:
The application was filed for approval of the Resolution Plan submitted by Vibhor Vaibhav Infrahome Private Limited, approved unanimously by the CoC, following extensive deliberations regarding compliance and timelines, aiming to revive Colorcity Homes Pvt. Ltd. under Insolvency proceedings.

Findings of Court:
The court upheld the Resolution Plan, determining its compliance with the IBC and allowing an extension of time for filing necessary approvals as stipulated.

Issues: The court addressed the need for adherence to statutory obligations and the functionality of the Resolution Plan aiming at the corporate debtor’s revival.

Ratio Decidendi: The court affirmed that the Resolution Plan adheres to Sections 30 and 31 of the IBC and was approved by the CoC, supporting the revival efforts for the corporate debtor in a structured manner.

Result: The Resolution Plan is approved and the moratorium ceases to operate.

Table of Content
1. application under ibc for resolution plan (Para 1 , 2)
2. claims by creditors established (Para 3 , 4 , 5)
3. evaluation of resolution plans initiated (Para 7 , 8 , 9 , 10)
4. timeline extensions for cirp accepted (Para 11 , 12 , 13)
5. details of performance guarantees for approval (Para 23 , 24 , 25)
6. addressing fraudulent transactions and their implications (Para 28 , 29)
7. approval of resolution plan based on compliance (Para 31 , 32 , 33 , 34)
8. final orders regarding the resolution plan (Para 37 , 38 , 39 , 40)
9. implementation of the resolution plan and discharge of rp (Para 41 , 44 , 46)

ORDER

Preliminary

1. The present interlocutory application bearing IA (Plan) No.1/2024 was moved on behalf of Mrs. Hemi Gupta, Resolution Professional (“RP”) of M/s Colorcity Homes Pvt. Ltd. under the provisions of Sections 30 (6) and 31(1)of the Insolvency & Bankruptcy Code, 2016 [hereinafter referred to as “the Code or “IBC”] read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) for approval of the Resolution Plan in respect of M/s Colorcity Homes Pvt. Ltd.

2. The underlying Company Petition CP (IB) No.04/ALD/2020 filed by M/s Neon Vincom Pvt. Ltd. under Section 7 of the Code for initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor namely M/s Colorcity Homes Pvt. Ltd., which was admitted by this Adjudicating Authority vide its order dated 02.03.2023 (“Admission Order”). On that date, i.e., 02.03.2023, Mrs. Hemi Gupta (IBBI/IPA-02/IP-N00147/2017- 2018/10383) was appointed as IRP, who was subsequently appointed as Resolution Professional (RP) in first CoC meeting dated 31.03.2023, which was later on confirmed as RP vide order dated 24.04.2023 passed by this Tribunal.

Page 2 of 36 Collation of claims by RP

3. It is stated in Resolution Plan that the public announcement was made on 05.03.2023 in Financial Express (English) and in Jansatta (Hindi), the last date for submission of claims was 16.03.2023, and RP called for proof of claims from the creditors of the Corporate Debtor and informed lenders to submit their claims as envisaged under the Code.

4. That pursuant to the public announcement made in FORM-A by the Resolution Professional, the details of claim submitted is as follows :-

Particulars	Amount Claimed	Claim Admitted
Unsecured Financial Creditors belonging to any class of creditors (Real estate allottees)		Rs.4,35,30,777.91/- Rs.3,04,43,132.59/-
Unsecured Financial Creditors (other than financial creditors belonging to any class of creditors)	Rs.5,31,00,000/-	Rs.5,31,00,000/-

5. It is submitted by the RP that the vide order dated 29.08.2023 passed by this Tribunal, the report of RP certifying the third re-constitution of the COC and list of Creditors was taken on record by way of IA No.419/2023. The details of the third re-constitution of the CoC is as under :-

Page 3 of 36

S.N	Category of creditor	Summary of claims received		Summary of claims admitted		Amou nt of conti ngent claim s	Amount of claims not admitted	Amount of claims under verification	Details in Annex.
		No. of clai ms	Amount	No. of clai ms	Amount of claims admitted
1.	Unsecured Financial Creditors belonging to any class of creditors	48	278460407.84	34	62817338.57	-	7726251.29	207916817.99	2
2.	Unsecured Financial Creditors (other than financial creditors belonging to any class of creditors	3	124439155.06	1	53100000.00	-	13650000.0 0	57689155.06	4

6. The RP submits that a total of 15 CoC meetings have been held during the whole CIRP period.

Evaluation and voting

7. It is stated in the Resolution plan that the CoC has interalia approved the publication of Form G, Request for Resolution Plan, Evaluation Matrix, Refundable Interest Free Earnest Money, Performance Security and Eligibility Criteria, and accordingly, invitations for Expression of Interest (EoIs) in Form- G were published on 01.05.2023.

8. In pursuance thereto, the Resolution Professional received three EoIs for submission of th

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2024 Supreme(Online)(NCLT) 5505

NATIONAL COMPANY LAW TRIBUNALMr. Praveen Gupta, Member (Judicial), Mr. Ashish Verma, Member (Technical)Hemi Gupta, Resolution Professional – AppellantVersusM/s Colorcity Homes Pvt. Ltd. – RespondentIA (Plan) No.01/2024 | CP (IB) No.04/ALD/2020

The court upheld a Resolution Plan under the Insolvency and Bankruptcy Code, affirming compliance with procedural requirements and emphasizing its viability for corporate revival.

NATIONAL COMPANY LAW TRIBUNAL
Mr. Praveen Gupta, Member (Judicial), Mr. Ashish Verma, Member (Technical)
Hemi Gupta, Resolution Professional – Appellant
Versus
M/s Colorcity Homes Pvt. Ltd. – Respondent
IA (Plan) No.01/2024 | CP (IB) No.04/ALD/2020