# In the matter of JM Financial Asset Reconstruction Company Ltd. & Ors. Vs. Sevenhills Healthcare Pvt Ltd & Ors CA(AT)(Insolvency) 134,136 & 165-2019

> NCLAT judgment dated 2019-04-08. Citation: TCN-2019-NCLAT-00686. The appeals were filed against a common order dated January 23, 2019, passed by the National…

- **Court:** NCLAT
- **Order date:** 8 Apr 2019
- **Citation:** TCN-2019-NCLAT-00686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jm-financial-asset-reconstruction-company-ltd-ors-vs-sevenhills-healthcare-pvt-l-609d4a89

## Summary

### Background

The appeals were filed against a common order dated January 23, 2019, passed by the National Company Law Tribunal (NCLT), Hyderabad Bench, regarding the corporate insolvency resolution process (CIRP) of Sevenhills Healthcare Private Limited. The NCLT had disposed of three applications, two by the promoter and one by the resolution applicant, and remitted the matter to the stage of calling for Expression of Interest, effectively restarting the CIRP. The initial CIRP was triggered by an application against Sevenhills Healthcare Private Limited, which was admitted on March 13, 2018. An Interim Resolution Professional was appointed, and an Expression of Interest was invited on May 14, 2018, leading to 18 Resolution Applicants. The Committee of Creditors (CoC) decided on an

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## Facts

The corporate insolvency resolution process (CIRP) was initiated against Sevenhills Healthcare Private Limited, with the application being admitted on March 13, 2018. An Interim Resolution Professional was appointed, and an Expression of Interest was invited on May 14, 2018, resulting in 18 Resolution Applicants. The Committee of Creditors (CoC) decided that an Earnest Money Deposit (EMD) of Rs.100 Crores was required. 17 Resolution Applicants did not submit a resolution plan due to the high EMD. M/s. BRS Ventures Investment Limited (BRSVIL) submitted a resolution plan, which was approved by the CoC on September 8, 2018. The total outstanding debt admitted by the Resolution Professional was Rs.1356.89 Crores. The Adjudicating Authority adjourned the matter multiple

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority had jurisdiction to entertain Interlocutory Applications at the …

**Ratio:** Once a resolution plan is approved by the Committee of Creditors and placed before the

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**Reasoning:** The NCLAT reasoned that the shareholders and promoters, being ineligible to file a

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**Interpretation:** This interpretation clarifies that the Adjudicating Authority's power to

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**Application:** In this case, the Interlocutory Applications were filed by shareholders and

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** JM Financial…
- **Respondents:** SEVENHILLS…; M/s. Well-Do…

## Timeline

- **2018-03-13 — CIRP Init…**: Application for initiation of CIRP against…
- **2018-05-14 — Expression of Interest…**: Resolution Professional…

## Legal provisions

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

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