Dismissed

In the matter of Phadnis Resorts and Spa India Ltd. Ia. No. 1236 & 1767-2021 in Cp(Ib)No. 3603-MB-C-II-2018

NCLT8 Jul 2022

Case brief

AI extract

What is this about?

Union Bank of India filed an interlocutory application seeking clarification on financial infusion timelines and monitoring committee tenure in an approved resolution plan. The NCLT found the application filed at a belated stage to derail proceedings and dismissed the claims regarding authority to intervene.

What did the court decide?

The Applicant's requests for clarification were dismissed as the application was filed late and the Resolutions Applicant had no locus standi to intervene. IA 1767/2021 disposed of as infructuous.

In the matter of Phadnis Resorts and Spa India Ltd. Ia… — Insolvency and Bankruptcy | NCLT (2022)

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IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH, COURT II

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IA. No. 1236/2021 & 1767/2021

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CP(IB)No. 3603/MB/C-II/2018

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Application filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 , r/w Rule 11 of the National Company Law Tribunal Rules, 2016.

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Filed by Union Bank of India

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…Applicant

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In the matter of

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Union Bank of India

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…Financial Creditor

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Versus

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Phadnis Resorts and Spa India Ltd.

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…Corporate Debtor

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Order Pronounced on :- 08.07.2022

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Coram:

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Hon’ble Member (Judicial) : Justice P.N. Deshmukh (Retd.) Hon’ble Member (Technical) : Mr. Shyam Babu Gautam

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Appearances ( through video conferencing)

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For the Applicant : Mr. Nausher Kohli, Adv. For the Respondent : Ms. Madhavi Nalluri, Adv.

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT II I.A. NO. 1236 /2021 & I.A. NO. 1767/2021 In C.P. (IB) No. 3603/MB/C-II/2018

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ORDER

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Per: Justice P.N. Deshmukh, Member Judicial

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The present Interlocutory application is filed by Union Bank of India, being financial creditor and member of Committee of Creditors (CoC) of the Corporate Debtor having a 64% voting share. The said Application is filed seeking certain clarification in the Resolution Plan. The Union Bank of India has sought clarification as to the time frame within which the Resolution Applicant will infuse sum of Rs. 4 Crores. Further, the Applicant also seeks clarification from the Resolution Applicant regarding the tenure of the Monitoring Committee as being only for 30 days and seeks to extend the time frame to 1277 days.

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The Resolution Applicant has provided all the necessary clarifications as sought by the Applicant. The Resolution Applicant has made it clear in its Clause 5 of the Additional Affidavit (pg. 398-400) filed in IA No. 3969 of 2019 as to the amount of Rs. 4 Crores to be infused and spent as and when required in the 1^st year itself on the resort at Lonavala and at Alibaug properties as approved under the Resolution Plan.

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Further, clarification sought with regard to the tenure of the Monitoring Committee, the Resolution Applicant has cleared that the Plan envisages adequate means for supervising and implementation of the

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Page 2 of 4

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT II I.A. NO. 1236 /2021 & I.A. NO. 1767/2021

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In C.P. (IB) No. 3603/MB/C-II/2018

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Plan in as much as the assets of the Corporate Debtor would continue to be mortgaged with the Financial Creditors and the Creditors will be provided with Management Information System (MIS) of the business and also the Creditors to be allowed to inspect the properties, account books.

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Further the plan also provides that the partners of the Resolution Applicant will be available in person before the members of the CoC as and when called on notice of 15 days.

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On perusal of the records and Additional Affidavit filed in IA 3969 of 2019, it is noted that after more than a span of 16 months of the approval of the amended Resolution Plan. The Plan had already been discussed and deliberated upon and thereafter put to vote and was approved by the members of CoC with 100% voting, considering its feasibility and viability. The present IA 1236 of 2021 has been filed by the Applicant at a belated stage and as an afterthought to derail and delay the proceedings in IA 3969 of 2019 filed for Approval of the Resolution Plan. Hence, the clarifications sought by the Applicant have been made clear by the Resolution Applicant and also once the Resolution Plan is approved by the members of the CoC, the role of the Adjudicating Authority is limited to the provisions under section 31 (1)

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Page 3 of 4

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IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT II I.A. NO. 1236 /2021 & I.A. NO. 1767/2021 In C.P. (IB) No. 3603/MB/C-II/2018

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of the Insolvency and Bankruptcy Code, 2016 (Code) to determine whether the requirements under Section 30 (2) of the Code have been fulfilled.

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In view of the above, IA 1236 of 2021 is hereby dismissed . Further, IA 1767 of 2021 was filed by the Resolution Applicant for intervening and prayed for the dismissal of the present Application. This Bench is of the view that the Resolution Applicant has no locus to intervene in the present Application. Further, as IA 1236 of 2021 has already been dismissed, IA 1767 of 2021 is disposed of as infructuous.

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Sd/-

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Sd/-

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SHYAM BABU GAUTAM JUSTICE P.N. DESHMUKH MEMBER (TECHNICAL) MEMBER (JUDICIAL)

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Page 4 of 4

In the matter of Phadnis Resorts and Spa India Ltd. Ia. No. 1236 & 1767-2021 in Cp(Ib)No. 3603-MB-C-II-2018

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In the matter of Phadnis Resorts and Spa India Ltd. Ia. No. 1236 & 1767-2021 in Cp(Ib)No. 3603-MB-C-II-2018

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