Navin Khandelwal, RP of Premshree Devcon Pvt Ltd Vs Mukesh Agrawal (NCLT Indore)
1. This application is filed on 14.02.2023 under Section 30(6) of Insolvency & Bankruptcy Code, 2016 by Mr. Navin Khandelwal Resolution Professional (RP) of the corporate debtor-M/s Premshree Devcon Private Limited for approval of the Resolution Plan submitted by M/s Land Nest Developers.
2. The facts of the case as noted from the present application as well as from the records are as under:
(i) The corporate debtor was admitted in Corporate Insolvency Resolution Process (CIRP) on 26.06.2019. Mr. Navin Khandelwal was appointed as Insolvency Resolution Professional (IRP). The IRP made a public announcement of the CIRP of the corporate debtor thereby calling upon its creditors to submit their claim with requisite proof. The Committee of Creditors (CoC) was constituted with the following financial creditors having voting percentages based on their debt value as follows:
| Sr. | Financial Creditor | Voting percentage |
|---|---|---|
| (i) | Madhya Pradesh Financial Corporation | 29.30 % |
| (ii) | Authorized Representative of Home Buyers CA Ashutosh Gokhale | 70.70% |
| Total | 100% | |
The CoC resolved to appoint the IRP as the RP and the same was approved by this Adjudicating Authority.
(ii) The RP published Form-G on 22.10.20 19 in local newspapers calling upon the prospective resolution applicants to submit the EoI/Resolution Plans for the corporate debtor. In response thereto, no resolution plans were received by the RP. Subsequently, the CoC in its 6th meeting dated 09.12.2019 resolved to liquidate the company with 80.53% therefore the RP filed an application bearing number IA 25 of 2020 before this Adjudicating Authority for liquidation of the corporate debtor.
(iii) During the pendency of the said liquidation application the Hon’ble NCLAT vide its order dated 23.12.2021 in Company Appeal (AT) (Insolvency) No.1073 of 2021 directed the Adjudicating Authority not to pass any order on liquidation application on 06.01.2022 i.e. the date on which th said liquidation application was listed before this Adjudicating Authority.
(iv) Following that, two prospective resolution applicants namely M/s Land Nest Developers and M/s Malwa Realities Private Limited filed their applications before this Adjudicating Authority with a view to submit their respective resolution plans even at that stage of CIRP.
(v) In view thereof the RP also filed an application i.e. IA 227 of 2022 for withdrawal of the liquidation application. Meanwhile, 300 days had already passed since the initiation of CIRP. However, the learned counsel for the RP had submitted that during the said period various litigations were pending at various stages and it also includes the pandemic period which the Hon’ble Supreme Court had suo moto In view of the submission of the learned counsel for the RP this Adjudicating Authority vide order dated 18.11.2022 had further granted 90 days to consider those pending plans and to file the required application immediately upon conclusion of the process.
(vi) Following that the CoC considered the Resolution Plans submitted by M/s Land Nest Developers and M/s Malwa Realities Private Limited in the 16thCoC meeting held on 25.01.2023 and decided to put the proposed resolution plans to vote (from 31.01.2023 to 0 1.02.2023). The resolution plan from M/s Land Nest Developers was approved by the CoC with 100% votes.
(vii) Subsequently the RP filed the present application for approval of the plan under section 30(6) of the Code. Meanwhile, the unsuccessful resolution applicant filed an application IA 70 of 2023 seeking direction to the RP for putting its revised plan before the CoC which was already submitted through email on 26.01.2023 itself. In the context theAdjudicating Authority vide its order dated 12.05.2023 directed the RP as under:
“5. Though the approach and attitude of the RP is not found above Board, but also the fact that the Applicant herein had sent his revised plan to all the members of CoC along with his e-mail dated 26.01.2023 and during the period of voting the plan was within knowledge of members of CoC may also be not ignored. In the wake, no positive direction can be issued to RP to call the meeting of CoC for the purpose of considering the revised plan of the Applicant herein, but in view of the peculiar facts and circumstances involved in the present application, particularly the fact that the Resolution Plans were received during extended period after 300 days from the date of commencement of CIRP, it would be in the interest of fairness and transparency to direct the RP and members of CoC to amplify and indicate that, whether at the time of voting or during 16th and 1 7th meeting of CoC, they were consciously clear in their mind not to consider the revised plan submitted by the Applicant herein. For such amplification, the RP would call a meeting of CoC. Needful shall be done within one week from the date of uploading a copy of this order on DMS/e-portal of this Adjudicating Authority. Ordered accordingly.”
(viii) In compliance to the said order dated 12.05.2023, the RP has filed an affidavit stating that the RP convened the 18th CoC meeting on 19.05.2023, wherein the CoC members submitted not to consider any revised plan and therefore the resolution plan of M/s Land Nest Developers as approved by the CoC with 100% votes is placed on record.
3. The averments made by the applicant/ resolution professional in the present application and as argued by the learned counsel are summarized as under:
i. The resolution applicant- M/s Land Nest Developers proposed to infuse a sum of Rs. 1103.12 lacs. Thereafter, the said resolution applicant through a separate affidavit dated 16.06.2023 has proposed to pay an additional amount of Rs.1,45,000/- to the operational creditors. Thus the total amount of infusion of funds is Rs. 1104.57 lacs. The details of the proposed payment to the stakeholders are as follows:
(Rs. in lacs)
