# In the matter of Fintech Restructuring LLP, Through Niraj Kumar vs. Fairdeal Multifilament Private Limited & Ors.

> NCLAT judgment dated 2024-12-03. Citation: TCN-2024-NCLAT-00049. The case involves appeals against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 3 Dec 2024
- **Citation:** TCN-2024-NCLAT-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/fintech-restructuring-llp-through-niraj-kumar-vs-fairdeal-multifilament-private-a909d626

## Summary

### Background

The case involves appeals against an order by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench-I) which rejected a resolution plan and directed the re-initiation of the Corporate Insolvency Resolution Process (CIRP) for Fairdeal Multifilament Private Limited. The Adjudicating Authority also removed the Resolution Professional (Fintech Restructuring LLP) and appointed a new RP. The appeals were filed by Fintech Restructuring LLP and Saraswat Cooperative Bank Ltd., a financial creditor.

## Facts

The Adjudicating Authority initiated CIRP against the Corporate Debtor on 2023-02-21 and appointed an Interim Resolution Professional. A public announcement was made on 2023-02-25. The CoC was constituted, comprising Saraswat Cooperative Bank Ltd. as a secured financial creditor with 41.95% voting share. Fintech Restructuring LLP was appointed as the RP on 2023-10-09. Fintech published Form-G to invite Expressions of Interest, receiving responses from eleven eligible parties. Three resolution plans were submitted by Manoj Sanklecha, Parth Poly Coat Yarn Private Limited, and Kanter Steel (India) Private Limited. The CoC extended the CIRP period to 2024-04-30. The e-bidding process concluded on 2024-03-29, with Parth submitting the highest bid. The CoC approved Parth's

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the resolution plan submitted by …

**Ratio:** The commercial wisdom of the CoC in approving or rejecting a resolution plan enjoys

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**Reasoning:** The NCLAT found that the Adjudicating Authority erred in rejecting the resolution plan

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**Interpretation:** This interprets the scope of judicial review over the CoC's decisions,

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**Application:** The NCLAT applied this principle by holding that the Adjudicating Authority

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** FINTECH RESTRUCTUR…
- **Respondents:** Fairdeal Multifila…; M/s Fairdeal…

## Timeline

- **2023-02-21 — CIRP Init…**: Adjudicating Authority initiated…
- **2023-02-25 — Public Annou…**: A public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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