# In the matter of Dhinal Shah Vs. Bharati Defence Infrastructure Ltd. Company Appeal (AT) (Ins.) No. 175-2019

> NCLAT judgment dated 2019-02-22. Citation: TCN-2019-NCLAT-00763. The case involves an appeal filed by the Resolution Professional against an order passed by…

- **Court:** NCLAT
- **Order date:** 22 Feb 2019
- **Citation:** TCN-2019-NCLAT-00763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dhinal-shah-vs-bharati-defence-infrastructure-ltd-company-appeal-9d246baf

## Summary

### Background

The case involves an appeal filed by the Resolution Professional against an order passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai bench. The Adjudicating Authority made adverse observations against the Resolution Professional and ordered the liquidation of the Corporate Debtor, Bharti Defence Infrastructure Ltd. The appellant's grievance is limited to the observations made against him by the Adjudicating Authority. The resolution plan submitted by Edelweiss Asset Reconstruction Company Ltd. was approved by the Committee of Creditors with a voting share of 94.3%. Despite this, the Adjudicating Authority questioned the viability and feasibility of the resolution plan, including asset maximization.

## Facts

The Resolution Professional (Dhinal Shah) appealed against an order by the Adjudicating Authority (NCLT Mumbai) due to adverse observations made against him. The Adjudicating Authority had also ordered the liquidation of Bharti Defence Infrastructure Ltd., the Corporate Debtor. Edelweiss Asset Reconstruction Company Ltd.'s resolution plan had been approved by the Committee of Creditors with a 94.3% voting share. Despite this approval, the Adjudicating Authority questioned the resolution plan's viability and feasibility. The Resolution Professional filed the application under Section 31(1) of the I&B Code. The key fact is the Adjudicating Authority's intervention despite the Committee of Creditors' approval, raising questions about the scope of the Adjudicating

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## Issues and analysis

### Issue 1: Whether the adjudicating authority can pass any adverse order against Resolution Professional in an …

**Ratio:** The adjudicating authority's power to pass adverse orders against a Resolution

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**Reasoning:** The court's reasoning is based on the principle that the Committee of Creditors is the

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**Interpretation:** This issue concerns the interpretation of the powers and responsibilities of

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**Application:** In this specific case, the Adjudicating Authority made adverse observations

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## Parties

- **Judges:** S.J. Mukhop…
- **Appellants:** Dhinal…
- **Respondents:** Bharti Defence…; Bharati Defence…

## Timeline

- **2019-01-14 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) Mumbai bench passed an order…
- **2018-12-26 — Reliance on Vandana…**: Learned counsel for the appellant placed reliance on the decision of the Appellate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31(1) — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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