Case Law Details
Utsav Securities Limited Vs Va Realcon Private Limited (NCLT Delhi)
Introduction: The National Company Law Tribunal (NCLT) in Delhi recently approved the resolution plan submitted by Durgesh Merchants Limited for VA Realcon. The detailed judgment discusses the application, compliance, and key aspects of the resolution process.
Detailed Analysis: The Corporate Insolvency Resolution Process (CIRP) was initiated by Utsav Securities Limited against VA Realcon. The Resolution Professional, Mr. Mohd. Nazim Khan, filed the application seeking approval for the resolution plan submitted by Durgesh Merchants Limited. The process involved a series of meetings, invitations for expressions of interest, and scrutiny of prospective resolution applicants.
The Compliance Certificate in Form-H was issued, ensuring adherence to the regulations. The plan’s compliance with Section 30(2) of the Insolvency and Bankruptcy Code was meticulously examined, covering aspects such as payment priorities, operational and financial creditor payments, and the management of the corporate debtor post-approval.
The resolution plan detailed corporate restructuring through amalgamation, addressing the interests of financial and operational creditors. The payment proposal to financial creditors, along with the timeline, was presented in a tabular format. The NCLT sought clarifications, including the list of shareholders and the rationale for issuing equity shares.
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