# In the matter of DKY Finance Pvt. Ltd. & Ors. vs. Sanjay Garg & Ors.

> NCLAT judgment dated 2025-02-28. Citation: TCN-2025-NCLAT-00189. The case involves three appeals filed against the order dated 14.05.2024 passed by the…

- **Court:** NCLAT
- **Order date:** 28 Feb 2025
- **Citation:** TCN-2025-NCLAT-00189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dky-finance-pvt-ltd-ors-vs-sanjay-garg-ors-712d1d18

## Summary

### Background

The case involves three appeals filed against the order dated 14.05.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Chandigarh Bench, Court II) approving the resolution plan submitted by M/s. Max Heights Infrastructure Limited, the Successful Resolution Applicant (SRA). The appellants, unsecured financial creditors of the corporate debtor, Suman Vilas Private Ltd., are aggrieved by the approval of the resolution plan and have come up in these appeals. The CIRP was initiated based on a Section 7 application filed by allottees of a housing project launched by the corporate debtor, commencing on 08.04.2022. Claims were filed by various financial creditors, including DKY Finance Private Limited, Tribhawan K. Parnami, and Mohinder Kaur Sachdeva.

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## Facts

The corporate debtor, Suman Vilas Private Ltd., launched a housing project, leading to a Section 7 application filed by allottees. The Corporate Insolvency Resolution Process (CIRP) commenced on 08.04.2022. DKY Finance Private Limited and Tribhawan K. Parnami, among others, filed claims as financial creditors. The Resolution Professional (RP) admitted the claims, and a list of unsecured financial creditors was published on 25.06.2022. The appellants collectively held 7.192% voting shares. The Committee of Creditors (CoC) approved the resolution plan with 85.56% voting share. The Adjudicating Authority approved the resolution plan on 14.05.2024. The appellants, unsecured financial creditors, challenged the approval, arguing that the resolution plan was approved after

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## Issues and analysis

### Issue 1: Whether the resolution plan was approved after the …

**Ratio:** The date of approval of the resolution plan by the Adjudicating Authority is not the

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**Reasoning:** The NCLAT noted that the resolution plan was approved by the CoC on 31.01.2023, and the

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**Interpretation:** This clarifies that the relevant date for determining compliance with the CIRP

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**Application:** In this case, the resolution plan was approved by the CoC and the application

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** DKY Finance Pvt.…
- **Respondents:** Suman Vilas…; Sanjay…

## Timeline

- **2022-04-08 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP)…
- **2022-04-10 — IRP Publi…**: Interim Resolution…

## 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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