# In the matter of Beacon Trusteeship Ltd. Vs. Jayesh Sanghrajka & Ors.

> NCLAT judgment dated 2024-05-27. Citation: TCN-2024-NCLAT-00408. The case involves appeals against orders related to the approval of a resolution plan for…

- **Court:** NCLAT
- **Order date:** 27 May 2024
- **Citation:** TCN-2024-NCLAT-00408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/beacon-trusteeship-ltd-vs-jayesh-sanghrajka-ors-7024bab3

## Summary

### Background

The case involves appeals against orders related to the approval of a resolution plan for Radius Estates & Developers Private Ltd. The appeals were filed by dissenting financial creditors, Beacon Trusteeship Ltd. and ICICI Prudential Venture Capital Fund Real Estate Scheme I, challenging orders dated 02.12.2022 and 09.01.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench). The initial order rejected objections to the resolution plan, while the subsequent order approved the resolution plan submitted by the Successful Resolution Applicant (SRA), Adani Goodhomes Pvt. Ltd. The appeals contest the approval of the resolution plan, citing concerns over valuation, unfairness in the plan's treatment of financial creditors versus

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## Facts

1. Radius Estates & Developers Private Ltd. (the Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) initiated by Beacon Trusteeship Ltd.
2. Beacon Trusteeship Ltd. and ICICI Prudential Venture Capital Fund Real Estate Scheme I were dissenting financial creditors.
3. The Adjudicating Authority approved a Resolution Plan submitted by Adani Goodhomes Pvt. Ltd.
4. Dissenting creditors objected to the Resolution Plan, citing concerns over valuation, unfairness, and procedural irregularities.
5. The Corporate Debtor's primary asset was redevelopment rights in a project on land owned by Maharashtra Housing and Area Development Authority (MHADA), leased to Middle Income Group Cooperating Housing Society.
6. MIG (Bandra) Realtors and Builders Private Ltd.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the Resolution Plan despite objections from …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in approving a

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**Reasoning:** The NCLAT emphasized that the Adjudicating Authority had considered all objections and

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**Interpretation:** The court's interpretation underscores the limited scope for judicial review of

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**Application:** The NCLAT applied this principle by deferring to the CoC's decision to approve

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Beacon Trusteeship…
- **Respondents:** Radius Estates &…; Jayesh Sang…

## Timeline

- **2010-10-31 — Development A…**: Society executed a Development Agreement with MIG (Bandra) Realtors and Builders Private…
- **2016-03-31 — Agreement with Radius…**: MIG (Bandra) Realtors and Builders Pvt Ltd. executed an Agreement with Radius Estates and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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