# In the matter of Martin S.K Golla Vs. Wig Associates Pvt. Ltd. and Ors. CA (AT) (Ins) No. 121 of 2019

> NCLAT judgment dated 2021-06-04. Citation: TCN-2021-NCLAT-00249. The case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 4 Jun 2021
- **Citation:** TCN-2021-NCLAT-00249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/martin-sk-golla-vs-wig-associates-pvt-ltd-and-ors-ca-a33e9d78

## Summary

### Background

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.

## Facts

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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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the Resolution Plan submitted by Mr. Mahendra …

**Ratio:** Section 29A of the IBC disqualifies certain individuals, including those related to the

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**Reasoning:** The tribunal reasoned that the ineligibility under Section 29A attaches at the time when

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**Interpretation:** Section 29A is interpreted to mean that the disqualification of a resolution

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**Application:** In this case, the tribunal applied the ratio to the facts and found that Mr.

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## Parties

- **Judges:** A.I.S. C…; KanthiNar…
- **Appellants:** Martin S.K.…
- **Respondents:** Wig Associates…
- **Advocates:** Davesh B…; Progoti…; +8 more

## Timeline

- **2017-07-19 — Filing of CP 1214/IBC/NC…**: CP 1214/IBC/NCLT/MB/MAH/2017 was…
- **2017-08-24 — Admission of…**: The petition was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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