# In the matter of Meir Commodities India Pvt. Ltd. vs. Narayanam Nageswara Rao & Ors.

> NCLAT judgment dated 2024-06-27. Citation: TCN-2024-NCLAT-00374. The case involves a Company Appeal filed by M/s. Meir Commodities India Pvt. Ltd., a…

- **Court:** NCLAT
- **Order date:** 27 Jun 2024
- **Citation:** TCN-2024-NCLAT-00374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/meir-commodities-india-pvt-ltd-vs-narayanam-nageswara-rao-ors-e8202393

## Summary

### Background

The case involves a Company Appeal filed by M/s. Meir Commodities India Pvt. Ltd., a Prospective Resolution Applicant (PRA) of NCS Sugars Ltd., challenging an order by the NCLT, Hyderabad. The NCLT order allowed Respondent No. 1, Mr. Narayanam Nageswara Rao, to submit a Resolution Plan and participate as a Resolution Applicant. The Appellant contends that the Impugned Order dated 08.05.2024 affects their material rights and is contrary to the I&B Code, 2016, because Respondent No. 1 was disqualified by the Committee of Creditors (CoC) due to Section 29A of the I&B Code, and is allegedly a 'Wilful Defaulter'.

## Facts

M/s. Meir Commodities India Pvt. Ltd., a Prospective Resolution Applicant (PRA) for NCS Sugars Ltd., filed an appeal against an order by the NCLT, Hyderabad. CIRP proceedings against NCS Sugars Limited were initiated on 24.06.2022 based on a Section 7 application by Punjab National Bank. The Resolution Professional invited expressions of interest from PRAs. The Appellant expressed interest on 19.09.2023 and submitted an application on 05.03.2024. The Committee of Creditors (CoC) disqualified Respondent No. 1, Mr. Narayanam Nageswara Rao, in its 18th meeting on 07.03.2024, citing Section 29A of the I&B Code. On 20.03.2024, the Resolution Professional shared a provisional list of PRAs. Respondent No. 1 filed IA No. 897/2024 to set aside the CoC's decision and IA No.

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## Issues and analysis

### Issue 1: Whether the Appellant, as a Prospective Resolution Applicant, has the locus standi to challenge the …

**Ratio:** A Prospective Resolution Applicant, who has only submitted an Expression of Interest and

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**Reasoning:** The Tribunal reasoned that the Appellant's status as a PRA does not automatically grant

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**Interpretation:** The interpretation is that a PRA's right to appeal is limited and depends on

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**Application:** In this case, the Appellant's offer had not been overlooked in favor of

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** M/s. Meir…
- **Respondents:** NCS Sugars…; Narayanam…

## Timeline

- **2022-06-24 — CIRP Init…**: CIRP proceedings were initiated against the Corporate Debtor M/s. NCS Sugars Limited…
- **2022-09-19 — Invitation for…**: Resolution Professional invited expression of interest, calling for Prospective…

## 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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