Allowed

In the matter of E & G Global Estates Limited [I.a. No. 3718 of 2023 in C.P. No. 2995 of 2019]

NCLT13 Sept 2023I.A. No. 3718 of 2023 in C.P. No. 2995 of 2019

Case brief

AI extract

What is this about?

The Tribunal allowed an application to rectify inadvertent errors in an order approving a resolution plan, correcting clauses regarding CIRP cost payment and the role of the monitoring professional based on the resolution plan text.

What did the court decide?

The application for rectification of inadvertent errors in the order dated 11.08.2023 was allowed and the matter was disposed off.

In the matter of E & G Global Estates Limited [I.a. No… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL

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MUMBAI BENCH - V

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I.A. No. 3718 of 2023

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C.P. No. 2995 of 2019

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Under Section 60 (5) of the Insolvency & Bankruptcy Code, Read with Rule 11 and 154 of the National Company Law Tribunal Rules, 2016.

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Mr. Gajesh Labhchand Jain

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(Resolution professional of E & G Global Estates Limited)

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…Applicant/Resolution Professional

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In the matter of

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Small Industrial Development Bank of India

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… Financial Creditor

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V/s.

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E & G Global Estates Limited

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... Corporate Debtor

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Order Dated: 13.09.2023

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Coram:

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Hon’ble Ms. Reeta Kohli : Member (Judicial) Hon’ble Ms. Madhu Sinha : Member (Technical)

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Appearances :

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For the Applicants: PCA Ayush Rajani a/w Khushboo Shah i/b AKR Advisors

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I.A. No. 3718 of 2023 IN C.P. No. 2995 of 2019

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ORDER

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Per: Ms. Madhu Sinha, Member (Technical)

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The above I.A. is filed for rectification of inadvertent errors in the order dated 11.08.2023 for IA No. 1150 of 2021.

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The Applicant submits that the petition was filed under section 7 of the Code by a Financial Creditor i.e. Small Industries Development Bank of India (“ SIDBI ”) against the Corporate Debtor for initiation of CIRP which stood admitted by this Tribunal vide Order dated 24th June 2020 and Mr. Gajesh Labhchand Jain was appointed as an IRP. Subsequently the IRP was confirmed as a Resolution Professional of the Corporate Debtor.

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The Applicant further submits that during the 8th CoC meeting held on 20 April 2021, three resolution plans were put to vote separately before the CoC members and the Resolution Plan proposed by Mrs. Asha Shivaji Sanap was approved with 79.60% voting results.

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The Applicant submits that he had filed an application bearing IA No. 1150 of 2021 under Section 30(6) of the Code for approval of the Resolution Plan by this Tribunal on 27 May 2021 and the same was allowed by this Bench vide order dated 11 August 2023.

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The Applicant submits that as per the addendum to the Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap has proposed that the CIRP Cost as approved in the RFRP and provided in the Resolution Plan to be paid at actuals. Relevant snapshot of the same is as under –

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Page 2 of 5

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I.A. No. 3718 of 2023 IN C.P. No. 2995 of 2019

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However, this Bench vide order dated 11 August 2023 passed in IA No, 1150 of 2021 at page 9, Para 11A had stated that “ the Resolution Applicant has estimated Insolvency Resolution Process Cost (till Cut-off period) approx. Rs. 100 Lakhs. However, in the event, if the final Insolvency Resolution Process Cost, as on the Effective Date, exceeds Rs. 100 Lakhs (Rupees hundred Lakhs), then the amounts payable to the creditors including but not limited to operational creditor, financial creditors, employees and workmen under this Resolution Plan may be adjusted accordingly on pro rata basis ”.

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7. The Applicant submits that in place of the above para the following as mentioned in addendum to Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap needs to be considered:

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“In the event that the final Insolvency Resolution process cost as on effective date, exceed Rs. 100 Lakhs (Rupees hundred lakhs) the actual amount shall be paid in full, irrespective of any provisional amount being mentioned for Insolvency Resolution process cost in the Resolution Plan, financial forecasts or any of the annexure in the plan”.

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The Applicant further submits that at page 23, para d, of the order dated 11 August 2023 passed in IA No. 1150 of 2021 states that “ The Applicant shall supervise the implementation of the Resolution Plan and

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Page 3 of 5

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I.A. No. 3718 of 2023 IN C.P. No. 2995 of 2019

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shall file status of its implementation before this Authority from time to time, preferably every quarter” .

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The Applicant Submits that in place of the above para the following as mentioned in Resolution Plan at page 43 submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap be con-

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sidered:

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“ Monitoring Professional shall supervise the implementation of the Resolution Plan and shall file status of its implementation before this Authority from time to time, preferably every quarter” .

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After thoroughly considering the pleadings filed and the arguments advanced by the parties, we are of the considered opinion that the addendum to the Resolution Plan was placed by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap wherein the SRA themselves has proposed that the CIRP Cost as approved in the RFRP and provided in the Resolution Plan to be paid at actuals. The relevant extract of the same is as under –

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In addition to the above, this bench has observed that at page 43 the Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap provides that the Monitoring professional

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Page 4 of 5

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I.A. No. 3718 of 2023 IN C.P. No. 2995 of 2019

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shall be appointed in consultation with the COC and the Resolution Professional. However, the order dated 11.08.2023 for IA No. 1150 of 2021 inadvertently mentions that “ The Applicant shall supervise the implementation of the Resolution Plan and shall file status of its implementation before this Authority from time to time, preferably every quarter” . The relevant extract of the Resolution Plan is as under –

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In view of the above facts and upon perusing the Order this bench is of the considered opinion that the submission made by the counsel for the Applicant are true in nature and do not tantamount to a modification of the approved Resolution Plan. Therefore, the rectifications are allowed.

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Accordingly, the above IA No. 3718 of 2023 is allowed and disposed off .

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Sd/- Sd/Ms. Madhu Sinha Ms. Reeta Kohli Member (Technical) Member (Judicial)

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Ms. Reeta Kohli Member (Judicial)

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In the matter of E & G Global Estates Limited [I.a. No. 3718 of 2023 in C.P. No. 2995 of 2019]

Case brief

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In the matter of E & G Global Estates Limited [I.a. No. 3718 of 2023 in C.P. No. 2995 of 2019]

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