Case Law Details
Rajul Mehta & Ors. Vs. Richfeel Health & Beauty Pvt Ltd (NCLT Mumbai)
The case revolves around the Corporate Insolvency Resolution Process (CIRP) of Richfeel Health & Beauty Pvt Ltd, initiated by financial creditor Rajul Mehta & Ors. under Section 7 of the Insolvency and Bankruptcy Code, 2016 (the Code). The National Company Law Tribunal (NCLT) Mumbai admitted the CIRP against Richfeel Health & Beauty Pvt Ltd on August 26, 2022, appointing Mr. Anuj Bajpai as the Interim Resolution Professional (IRP).
Timeline and Key Events
The IRP made a public announcement on August 28, 2022, inviting claims from creditors, with a submission deadline of September 9, 2022. The Committee of Creditors (CoC), constituted on September 18, 2022, included Unity Small Finance Bank Ltd as the sole secured financial creditor with a 100% voting share. During the first CoC meeting on September 26, 2022, Unity Small Finance Bank Ltd did not approve the proposed fees for independent valuers or transaction auditors, and no resolution was passed to confirm the IRP as the Resolution Professional. The IRP published the list of claims and voting shares on November 25, 2022, and reconstituted the CoC on December 13, 2022, to include two secured financial creditors. The second CoC meeting resolved the appointment of registered valuers and the publication of Form G for inviting Expressions of Interest (EoI). Registered valuers were appointed to determine the Liquidation Value and Fair Value of the Corporate Debtor’s assets, and the IRP issued the provisional list of eligible prospective resolution applicants on March 28, 2023. An application was filed to replace the IRP with Mr. Mayur Rajendra Kumar Popat as the Resolution Professional, which the Tribunal approved on June 16, 2023. Four prospective applicants submitted EoIs, resulting in two resolution plans: one from a consortium of Ms. Bina Shah & Ms. Seema Goel and another from Mr. Vikas Phadnis. After discussions in the 10th and 11th CoC meetings, the consortium’s revised plan received 90.41% votes, making them the Successful Resolution Applicant (SRA). The SRA submitted a performance bank guarantee of Rs. 2.5 crore. The Tribunal extended the CIRP period by 90 days and allowed further extensions as needed. The application for approval of the resolution plan was filed before the expiry of the CIRP period.
Corporate Debtor’s Background
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