# In the matter of Gateway Investment Management Services Ltd. vs. Reserve Bank of India & Ors.

> HC judgment dated 2024-09-23. Citation: TCN-2024-HC-00029. Gateway Investment Management Services Ltd. filed a writ petition before the High Court of Delhi…

- **Court:** HC
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-HC-00029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/gateway-investment-management-services-ltd-vs-reserve-bank-of-india-ors-c5386df3

## Summary

### Background

Gateway Investment Management Services Ltd. filed a writ petition before the High Court of Delhi under Article 226 of the Constitution of India, seeking reliefs against the Reserve Bank of India (RBI) and other respondents. The petitioner, claiming to be the highest bidder in the Corporate Insolvency Resolution Process (CIRP) for Helios Photo Voltaic Private Limited, alleged that its bid was unfairly rejected by the Committee of Creditors (CoC). The petitioner sought a writ of mandamus to direct the respondents to develop a framework under the Banking Regulation Act, 1949, for financial institutions, to act fairly and transparently in approving resolution plans, and to initiate a fresh voting process on the petitioner's resolution plan.

## Facts

Gateway Investment Management Services Ltd. (the petitioner) participated in the Corporate Insolvency Resolution Process (CIRP) for Helios Photo Voltaic Private Limited (the corporate debtor). The petitioner claimed to be the highest bidder, offering Rs. 109,87,50,000/- payable over 12 months. The Committee of Creditors (CoC) rejected the petitioner's bid on 18.09.2024, allegedly in an arbitrary manner. A Successful Resolution Applicant (SRA) had offered to infuse Rs. 99 crores in thirty days. The petitioner had revised its offer to make payment of the second installment of Rs. 75 crores within 90 days. The CoC accepted a resolution plan from respondent No. 4, envisaging a total payment of Rs. 99 crores within 30 days. The petitioner alleged systematic leakage from

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## Issues and analysis

### Issue 1: Whether the High Court has the jurisdiction to interfere with the commercial wisdom of the …

**Ratio:** The commercial wisdom of the CoC is given primacy in the CIRP, and the Adjudicating

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**Reasoning:** The court reasoned that the IBC assigns primacy to the commercial wisdom of the CoC,

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**Interpretation:** The court interpreted the IBC as granting significant autonomy to the CoC in

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**Application:** In this case, the court found that the CoC's decision to reject the

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## Parties

- **Judges:** DHARMESH…
- **Appellants:** Gateway Investment…
- **Respondents:** Helios Photo…; Reserve Bank of…

## Timeline

- **1949-01-01 — Banking Regula…**: Reference to the Banking Regulation Act, 1949, in the context of developing a framework…
- **2024-07-29 — E-auctio…**: The petitioner participated in an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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