The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving a resolution plan under the Insolvency and Bankruptcy Code (IBC). The appellant, a Resolution Professional, filed the appeal after the NCLT approved a resolution plan submitted by Mr. Mahendra Wig, which was essentially a One Time Settlement (OTS) converted into a resolution plan. The Insolvency and Bankruptcy Board of India (IBBI) had previously raised concerns about the eligibility of Mr. Wig under Section 29A of the IBC, which disqualifies certain individuals from submitting resolution plans. The NCLT, despite being aware of the provisions of Section 29A, proceeded to approve the resolution plan, leading to the present appeal.
The Corporate Debtor is M/s. Wig Associates Pvt. Ltd. A petition was filed under Section 10 of IBC against the Corporate Debtor due to a debt of Rs.4,85,14,000 to Bank of Baroda. The petition was admitted on August 24, 2017. The Committee of Creditors (COC) comprised only Bank of Baroda. In the third COC meeting on April 6, 2018, the bank informed the Resolution Professional that it had sanctioned a One Time Settlement (OTS) offer issued by Mr. Mahendra Wig. The bank proposed treating the OTS as a Resolution Plan. The Resolution Professional obtained a valuation report stating the average liquidation value as Rs.87.60 Lakhs. The sole Financial Creditor was to recover Rs.1067.39 Lakhs. The Resolution Professional placed the Resolution Plan before the COC on April 20,
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CP 1214/IBC/NCLT/MB/MAH/…
The petitio…
The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, approving a resolution plan under the Insolvency and Bankruptcy Code (IBC). The appellant, a Resolution Professional, filed the appeal after the NCLT approved a resolution plan submitted by Mr. Mahendra Wig, which was essentially a One Time Settlement (OTS) converted into a resolution plan. The Insolvency and Bankruptcy Board of India (IBBI) had previously raised concerns about the eligibility of Mr. Wig under Section 29A of the IBC, which disqualifies certain individuals from submitting resolution plans. The NCLT, despite being aware of the provisions of Section 29A, proceeded to approve the resolution plan, leading to the present appeal.
The Corporate Debtor is M/s. Wig Associates Pvt. Ltd. A petition was filed under Section 10 of IBC against the Corporate Debtor due to a debt of Rs.4,85,14,000 to Bank of Baroda. The petition was admitted on August 24, 2017. The Committee of Creditors (COC) comprised only Bank of Baroda. In the third COC meeting on April 6, 2018, the bank informed the Resolution Professional that it had sanctioned a One Time Settlement (OTS) offer issued by Mr. Mahendra Wig. The bank proposed treating the OTS as a Resolution Plan. The Resolution Professional obtained a valuation report stating the average liquidation value as Rs.87.60 Lakhs. The sole Financial Creditor was to recover Rs.1067.39 Lakhs. The Resolution Professional placed the Resolution Plan before the COC on April 20,
…CP 1214/IBC/NCLT/MB/MAH/…
The petitio…