IA(IBA)/87/KOB/2021

In

IBA/23/KOB/19

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THE NATIONAL COMPANY LAW TRIBUNAL

KOCHI BENCH, KOCHI

IA(IBA)/87/KOB/2021

In

IBA/23/KOB/19

(Under Section 33(1(a))of IBC, 2016)

Order delivered on 25.11.2021

Coram:

1. Hon’ble Shri Ashok Kumar Borah, Member (Judicial)

2. Hon’ble Shri Anil Kumar B., Member (Technical)

Applicants/Intervenors

Shri Vinod PadinhareVeetil,

Resolution Professional of

Dewa Projects Pvt Ltd

66-1058, First Floor,

Veekshanam Road,

Ernakulam 682 018.

Vs.

Impleaded Respondent (Vide order dated 27.10.2021)

Union Bank of India,

(Leader of the Consortium of lenders of Dewa Projects Pvt Ltd.),

Union Bank Bhawan,

Opposite Shenoys Theatre,

MG Road, Ernakulam 682 035

Represented by its Assistant General Manager Mr. Balakrishna A Bhat

In the matter of

Rita Venugopal & another ] Financial Creditor

Vs.

Dewa Projects Pvt ltd

] Corporate Debtor

Parties/Counsels Present:

For Applicant s

:RP Shri Vinod PV appeared in person

For Respondent

: Shri Nidhi Sam John, Advocate

IA(IBA)/87/KOB/2021

In

IBA/23/KOB/19

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Per: Ashok Kumar Borah, Member (J)

1. This order has arisen out of the IA filed under Section 33(1)(a) of IBC, 2016

by the Resolution Professional for liquidation of the Corporate Debtor Dewa

Projects Pvt Ltd.

2. This Tribunal vide order dated 13.09.2019 admitted the IBA/23/KOB/2019

filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 and

appointed the Applicant as the Interim Resolution Professional and later the

Committee of Creditors confirmed the IRP as Resolution Professional (RP).

3. The Resolution Professional submitted that he invited expression of interest

on 21.12.2019 through advertisement, however there was no response to the

said advertisement. Accordingly, further revised Expression of Interest

through advertisement was given in newspapers. Further to the publication of

revised EOI, the Resolution Professional has contacted various real estate

developers, who were holding adjacent lands to the Project of the Corporate

Debtor. In response to the advertisement, Lulu Infra Build Pvt Ltd expressed

their interest to submit Resolution Plan on 12.2.2020. Accordingly, the

Resolution Professional has issued request for resolution plan to Lulu Infra

Build Pvt Ltd on 28.2.2020. Thereafter, M/s. Lulu Infrabuild Private Limited

submitted a Resolution Plan with a Resolution Amount of Rs.110 Crore which

was much below the liquidation value of Rs.140.25 Crore and the Resolution

Plan and that it was also complex as it was proposing a merger of the

IA(IBA)/87/KOB/2021

In

IBA/23/KOB/19

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Corporate Debtor with its subsidiary and extinguishment shares of the

subsidiary. The members of Committee of Creditors (CoC) sought time to take

their internal approvals as in view of lock down they were not in a position to

take immediate decision in the Plan and instructed the RP to seek the

indulgence of this Tribunal for extension of time.

4. Based on further negotiation done by the CoC, the Resolution Applicant M/s.

Lulu Infrabuild Private Limited enhanced the value by another 2.60 Crore,

however reserving their right to use Rs.2 Core to meet any contingency

expenses which arises during the implementation of the plan. The members

of the CoC discussed the Plan in various meetings, however they could not

reach a consensus on the approval of the Plan including distribution of money

among Financial Creditors and Home Buyers. On 17.03.2021, the Resolution

Applicant M/s. Lulu Infrabuild Private Limited again revised theResolution

Plan and enhanced the Resolution Amount from Rs.112.60 Crore to Rs.

113.35 Crore. This plan proposed 88 Crore to FC and principal dues to the

Home Buyers. In order to review of the Plan, the CoC instructed RP to seek

the indulgence of this Tr