# In the matter of First Global Finance Pvt. Ltd. Vs. IVRCL Limited and Anr. CA(AT)(Ins)No.918-919 of 2019

> NCLAT judgment dated 2020-05-29. Citation: TCN-2020-NCLAT-00253. The case involves an appeal against the rejection of a Resolution Plan submitted by First…

- **Court:** NCLAT
- **Order date:** 29 May 2020
- **Citation:** TCN-2020-NCLAT-00253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/first-global-finance-pvt-ltd-vs-ivrcl-limited-and-anr-ca-610ea24f

## Summary

### Background

The case involves an appeal against the rejection of a Resolution Plan submitted by First Global Finance Pvt Ltd. for the Corporate Debtor, IVRCL Limited. State Bank of India initiated the insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Resolution Plan was rejected by the Committee of Creditors (CoC) due to deviations from the Expression of Interest (EOI), non-submission of the Earnest Money Deposit (EMD), and non-compliance with minimum qualification criteria. The Appellant contends that the rejection was arbitrary and that the CoC's decision was flawed. The CoC insisted that Phoenix ARC would not be considered while deciding the eligibility.

## Facts

State Bank of India initiated insolvency proceedings against IVRCL Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) commenced on February 23, 2018. The Resolution Professional invited Expression of Interest (EOI) for submitting a Resolution Plan. First Global Finance Private Limited, along with others, submitted a Resolution Plan as part of an 'Original Consortium'. The CoC rejected the initial Resolution Plan due to deviations from the EOI. A second EOI process was initiated. First Global submitted a revised Resolution Plan as part of a 'Reconstituted Consortium'. The CoC rejected the revised Resolution Plan due to deviations from the EOI, non-submission of the Earnest Money Deposit (EMD), and

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## Issues and analysis

### Issue 1: Whether the rejection of the Resolution Plan …

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

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**Reasoning:** The CoC rejected the Resolution Plan due to deviations from the Expression of Interest

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**Interpretation:** The CoC has the authority to reject a Resolution Plan if it deems the plan to

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**Application:** In this case, the CoC's decision to reject the Resolution Plan was based on

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## Parties

- **Judges:** Jarat Kuma…; Balvinder…; +1 more
- **Appellants:** First Global…
- **Respondents:** IVRCL Li…

## Timeline

- **2018-02-23 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2018-05-09 — First EOI Inv…**: Public announcement for inviting Expression of Interest (EOI) to submit the 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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