Jayprabhu Industries LLP Vs Mudra Denim Pvt Ltd (NCLT Mumbai)
Summary: NCLT, Mumbai Bench, ordered liquidation of M/s Mudra Denim Pvt. Ltd. under Section 33(1) read with Section 33(2) of the Insolvency and Bankruptcy Code, 2016, after the Committee of Creditors (CoC) resolved with 99.89% voting share to initiate liquidation. The Corporate Insolvency Resolution Process had commenced pursuant to the Tribunal’s order dated 14.10.2022 on a Section 9 application filed by operational creditor M/s Jayprabhu Industries LLP. The CoC comprised IDBI Bank, Indian Bank, Punjab National Bank and Bharatiya Fincom Pvt. Ltd., with admitted financial claims aggregating to Rs.222.88 crore. Claims aggregating to Rs.19.38 crore were received from 15 operational creditors, of which Rs.13.93 crore was admitted. After an initial Form G process yielded only one resolution plan from M/s Proma Industries Limited, the CoC decided to undertake a fresh EoI process in the interest of value maximisation. Following republication of Form G, resolution plans were received from Proma Industries Ltd. in consortium with Scottish Lifestyle Pvt. Ltd., Arvind Limited and Mr. Arman Agarwal. During the 18th CoC meeting held on 13.12.2023, it was noted that Proma Industries Limited in consortium with Scottish Lifestyle Private Limited and Mr. Arman Agarwal had failed to deposit the requisite EMD of Rs.1 crore. The CoC declined relaxation of the RFRP conditions and the plans stood rejected as non-responsive. The CoC consequently approved liquidation with 99.89% voting share.
Want to Read the Complete Judgment?
You have read the free case summary. Unlock the full judgment, the detailed judicial reasoning and the downloadable PDF, along with every other premium judgment on TaxGuru.
Already subscribed? Log in
One subscription covers the entire premium judgment library, not just this case.
