# In the matter of Kotak Mahindra Bank Limited vs. Resolution Professional of Universal Buildwell Private Limited & Ors. Company Appeal (AT) (Insolvency) No.661 of 2021

> NCLAT judgment dated 2023-04-11. Citation: TCN-2023-NCLAT-00629. The appeal was filed against an order dated 2021-06-11 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 11 Apr 2023
- **Citation:** TCN-2023-NCLAT-00629
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kotak-mahindra-bank-limited-vs-resolution-professional-of-universal-buildwell-pr-6dff1f0e

## Summary

### Background

The appeal was filed against an order dated 2021-06-11 passed by the National Company Law Tribunal, New Delhi Bench-II. The Corporate Debtor, Universal Buildwell Pvt. Ltd., was admitted into insolvency on 2018-07-03 following an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. Kotak Mahindra Bank Limited and Kotak Mahindra Prime Limited, the Appellants, submitted claims to the Resolution Professional (RP). The RP appointed two valuers, and the resolution plan submitted by Welfare Association Consortium was approved by a majority vote, with the Appellants voting against it. The Appellants objected to the treatment provided to them in the Resolution Plan, particularly regarding the NIL liquidation value ascribed to them for the Universal Business

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## Facts

Universal Buildwell Pvt. Ltd. was admitted into insolvency on 2018-07-03. Kotak Mahindra Bank Limited and Kotak Mahindra Prime Limited (Appellants) are financial creditors. The Appellants submitted claims to the Resolution Professional (RP). The RP appointed two valuers to determine the fair value and liquidation value of the Corporate Debtor's assets. The Resolution Plan submitted by Welfare Association Consortium was approved by 70.44% voting share, with the Appellants voting against it. The Appellants objected to the treatment provided to them in the Resolution Plan, particularly regarding the NIL liquidation value ascribed to them for the Universal Business Park project. The total average liquidation value for the Corporate Debtor as assessed by the Registered

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the CoC to re-examine the issue of …

**Ratio:** The liquidation value arrived at by the valuers serves an important factor in the entire

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**Reasoning:** While the CoC can take a call to ask for any fresh valuation due to any relevant

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**Interpretation:** The court interpreted the statutory scheme under the CIRP Regulations and the

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**Application:** In the present case, the court found that the direction by the Adjudicating

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Universal…; Resolution…

## Timeline

- **2021-06-11 — Order Da…**: Order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi…
- **2018-07-03 — Insolvency Ad…**: Universal Buildwell Pvt. Ltd. was admitted into insolvency by an order on an Application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 49 — Transactions defrauding creditors](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-49)

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