# In the matter of Rakshit Dhirajlal Doshi & Ors. vs. Sumedha Management Solutions Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-02-08. Citation: TCN-2024-NCLAT-00647. The appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 by the…

- **Court:** NCLAT
- **Order date:** 8 Feb 2024
- **Citation:** TCN-2024-NCLAT-00647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rakshit-dhirajlal-doshi-ors-vs-sumedha-management-solutions-pvt-ltd-ors-4e22dddf

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 by the Suspended Directors, Mr. Rakshit Dhirajlal Doshi and Mr. Ashit Doshi, of the Corporate Debtor M/s Doshion Private Limited against the impugned order dated 03.10.2023 passed by the National Company Law Tribunal, Ahmedabad Bench (Adjudicating Authority). As per the impugned order, Doshion Private Limited was admitted into liquidation under Section 33 of the Code in I.A. No.769(AHM)2021 in CP(IB) No. 59 of 2019. IDBI Bank had agreed to sanction financial assistance to the CD to the tune of Rs. 32.7 Crores. Later on in the year 2014, on the request of the CD the Financial Creditor agreed to restructure the loan of the CD under the consortium finance by way of enhanced overall credit

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## Facts

Rakshit Dhirajlal Doshi and Ashit Doshi, the suspended directors of Doshion Private Limited (Corporate Debtor), filed an appeal against the order of the National Company Law Tribunal (NCLT), Ahmedabad Bench, which initiated liquidation proceedings against Doshion Private Limited. IDBI Bank had sanctioned financial assistance of Rs. 32.7 Crores to the Corporate Debtor, which was later restructured to Rs. 93.48 Crores. The Financial Creditor (IDBI Bank) filed an application under Section 7 of the IBC before the NCLT on 19.12.2018. The NCLT admitted the Section 7 petition on 30.1.2021 and appointed an Interim Resolution Professional (IRP). The Adjudicating Authority decided to liquidate the Corporate Debtor on 03.10.2023 based on the unanimous recommendation of the

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## Issues and analysis

### Issue 1: Whether CoC's decision to liquidate was tainted with …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in the

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**Reasoning:** The Tribunal found that the CoC had taken a commercial decision based on discussions with

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**Interpretation:** The decision emphasizes the importance of respecting the commercial wisdom of

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**Application:** In this case, the Tribunal applied the principle of deference to the CoC's

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Rakshit Dhirajlal…
- **Respondents:** Doshion Private…; Sumedha Management…
- **Advocates:** Vaishnavi…; Gaurav H.…; +4 more

## Timeline

- **2023-10-03 — Impugned…**: Order passed by the 'Adjudicating Authority' (National Company Law Tribunal, Ahmedabad…
- **2018-12-19 — Section 7 App…**: The Financial Creditor filed an application under Section 7 of the IBC before the NCLT,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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