Amit Vijay Karia Vs Beacon Trusteeship Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, considered an application filed by the Resolution Professional (RP) under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 for approval of a resolution plan submitted by Mantra Properties and Developers Private Limited in respect of M/s Nirmal Lifestyle (Mulund) Private Limited (Corporate Debtor). Alongside the main application, multiple interlocutory applications (IAs) filed by homebuyers, promoters, and third parties were also adjudicated.
CIRP Background and CoC Composition
The Corporate Insolvency Resolution Process (CIRP) was initiated on 11 July 2023 upon admission of a Section 7 application. The Committee of Creditors (CoC) comprised two financial creditors: a secured creditor holding 60.54% voting share and an unsecured creditor holding 39.46%. The Resolution Professional was confirmed in the first CoC meeting.
Valuation and Inclusion of Project Olympia
A key issue in the CIRP was the valuation and inclusion of “Project Olympia,” a real estate project undertaken by a partnership firm (Nirmal Developers) in which the Corporate Debtor held a 99.98% share in profits. Initially, valuers did not include this project due to lack of clarity, resulting in negligible valuation. Subsequently, after appointing a third valuer and revising reports, the project was included, significantly increasing the Corporate Debtor’s fair value to approximately ₹284.87 crore and liquidation value to ₹214.03 crore.
