Sushil Kumar and others Vs Suman Villas Private Limited (NCLT Chandigarh)
The case of Sushil Kumar and Others vs. Suman Villas Private Limited was brought before the National Company Law Tribunal (NCLT), Chandigarh, for the approval of a resolution plan under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (IBC). The resolution professional, Mr. Sanjay Garg, acting on behalf of Suman Villas Private Limited (the “Corporate Debtor”), sought approval for the resolution plan submitted by Max Heights Infrastructure Limited.
Background
Suman Villas Private Limited, a real estate company incorporated on March 9, 2006, faced financial difficulties, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC. The application was admitted on April 8, 2022, with Mr. Sanjay Garg appointed as the Interim Resolution Professional (IRP). A moratorium under Section 14 of the Code was imposed to protect the company from further legal actions during the insolvency process.
Claims and Creditors
The resolution professional received claims from various creditors, including unsecured financial creditors and operational creditors. The total amount claimed was approximately INR 1,393.35 crores, with INR 946.96 crores admitted. The details of these claims were verified and reported by the resolution professional to the Committee of Creditors (CoC).
Resolution Process
An Expression of Interest (EOI) was invited on July 20, 2022, and five parties expressed interest, of which four were found eligible. The CoC held several meetings to discuss and evaluate the resolution plans. After a detailed examination, the plan submitted by Max Heights Infrastructure Limited was approved with an 86.67% majority through an e-voting process.
Financial Proposal
The approved resolution plan included key financial proposals:
- An upfront consideration of INR 10 crores to be paid into the corporate debtor’s account.
- Payment of INR 1.50 crores to unsecured financial creditors.
- 100% payment to workmen and employees for parity dues.
- INR 10 crores or more to be invested by the successful resolution applicant (SRA) to complete the pending infrastructure, with costs recovered from outstanding dues of homebuyers.
Approval and Compliance
The resolution plan was submitted to the NCLT for approval. The tribunal reviewed the plan and found that it complied with all mandatory provisions of the IBC. No objections were raised against the approval of the plan. The tribunal, therefore, approved the resolution plan, marking a significant step towards the revival of Suman Villas Private Limited.
Conclusion
The approval of the resolution plan by the NCLT Chandigarh is a crucial development in the insolvency proceedings of Suman Villas Private Limited. The successful implementation of this plan will aid in addressing the claims of the creditors and ensure the completion of pending projects, ultimately benefiting all stakeholders involved.
