Bank of Maharashtra Vs D.S. Kulkarni Developers Limited (NCLT Mumbai)
Mumbai Bench-I of the National Company Law Tribunal (NCLT) has pronounced the order on 23.06.2023, approving the Resolution Plan submitted by Ashdan Properties Pvt. Ltd., Classic Promoters & Builders Pvt. Ltd. and Atul Builders- Consortium, i.e. Resolution Applicant, for the Corporate Insolvency Resolution of the D.S. Kulkarni Developers Limited under Section 31 of the IBC, 2016.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
1. The present application is moved by Resolution Professional Mr. Manoj Kumar Agarwal (hereinafter called as “the Applicant”) under section 30 (6) of the Insolvency and Bankruptcy Code, 2016 (“code”) r/w Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 for seeking approval of the resolution plan of Ashdan Properties Private Limited (hereafter called as the “Successful Resolution Applicant/SRA”) under the provisions of Section 3 1(1) of the code, for the Corporate Debtor D.S. Kulkarni Developers (hereinafter called as the “Corporate Debtor”) and for passing order/appropriate direction that this Tribunal may deem fit in the present matter.
2. The CIRP was initiated against the Corporate debtor vide Order dated 26.09.2019 and the Applicant herein was appointed as the The Interim Resolution Professional (hereinafter referred to as the IRP) made a public announcement in Form A on 30.09.2019. The IRP constituted the Committee of Creditors (hereinafte referred to as the CoC) on 18.10.2019. Subsequently, the First CoC meeting took place on 25.10.2019 wherein the IRP was appointed as the Resolution Professional.
3. Thereafter, the Resolution Professional filed an application for extension under Section 12(3) seeking an extension of 90 days on 03.2020. The Applicant submits that due to Covid-19 pandemic the matter was delayed. Finally, the extension Application was heard and disposed off on 03.12.2020. The CIRP period was extended for a period of 90 days from the date of the Order.
4. The Applicant filed an exclusion Application in light of the Hon’ble Supreme Court and NCLAT Orders4. extending the timelines, this Tribunal granted an exclusion for a period from March 2020 to 14.03.2021. Accordingly, it is submitted that the CIRP stood extended from 15.03.2021 till 13.06.2021.
5. In the meantime, Form G was published in newspapers on 10.12.2019, 27.12.2019, 27.02.2019 and 16.03.2021. The last date for submitting the EOI was fixed on 22.04.2021 as per latest Form G published on 16.03.2021. However, pursuant to the requests of the prospective Resolution Applicants the CoC by a majority vote of 59.56% granted the PRA’s an extension till 22.05.2021.
6. The Applicant received Resolution Plans from 3 prospective Resolution Applicants:
i. Mantra Properties and Developers Pvt. Ltd.
ii. Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd., Atul Builders-Consortium
iii. Hemendra D Shah, Kanhaiyalal H Matani and Ghanshyam J Sukhwani- Consortium.
7. The Applicant submits that in 2nd adjourned 25th CoC meeting the CoC resolved to approve the Resolution Plan of Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd., Atul Builders-Consortium by majority vote of 83.37%. The minutes of the meeting and voting sheet is placed at page 70-84 of the Petition. The plan is approved by 83.37% of CoC members which exceeds the minimum threshold of 66% for approval of Resolution Plan as per Section 30(4).
8. The Applicant has annexed the summary of claims as on 08.2021 as Exhibit H. The average Liquidation value is Rs. 596.73 Crores.
9. The SRA proposes to make the following payments Amount in Crores.
