# In the matter of Renganayaki Agencies Vs. Sreenivasa Rao Ravinuthala CA (AT) (CH) (Ins) No. 23 of 2021

> NCLAT judgment dated 2021-04-19. Citation: TCN-2021-NCLAT-00275. The appeal was filed by the Successful Resolution Applicant, M/s Renganayaki Agencies,…

- **Court:** NCLAT
- **Order date:** 19 Apr 2021
- **Citation:** TCN-2021-NCLAT-00275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/renganayaki-agencies-vs-sreenivasa-rao-ravinuthala-ca-635597e0

## Summary

### Background

The appeal was filed by the Successful Resolution Applicant, M/s Renganayaki Agencies, challenging an order of the Adjudicating Authority (NCLT, Hyderabad Bench) that directed the Committee of Creditors to conduct fresh bids for the resolution plan, despite the appellant's plan having been approved with 100% voting share.

## Facts

The appellant, M/s Renganayaki Agencies, a successful resolution applicant, filed an appeal against an order dated February 24, 2021, passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench). The Adjudicating Authority's order, in IA No. 1094/2020 in CP No. 153/7/HDB/2019, directed the Committee of Creditors to take fresh bids from the existing two resolution applicants within one month, despite the resolution plan of M/s. KALS Group having been approved with 100% voting. The Adjudicating Authority observed that while the resolution plans of M/s. KALS Group and Mr. Chava Suresh Babu were almost equally placed, with KALS Group scoring higher on faster payment, there was a scope for further improvement in the resolution amount. This led to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority exceeded its jurisdiction by directing the Committee of …

**Ratio:** The Adjudicating Authority cannot interfere with the commercial wisdom of the Committee

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority's direction for fresh bids, despite

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**Interpretation:** The NCLAT interpreted **Sections 30 and 31** of the I&B Code, 2016, as

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**Application:** Applying this interpretation, the NCLAT found that the Adjudicating Authority's

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## Parties

- **Judges:** Venugop…; V. P. S…
- **Appellants:** M/s Renganayaki…
- **Respondents:** Samyu Glass…; Sreenivasa Rao…
- **Advocates:** For Appellant:…; Advocate. For…; +1 more

## Timeline

- **February 17, 2020 — Order denying second…**: An order was passed denying unsuccessful resolution applicants the right to a second vote…
- **February 17, 2021 — Adjudicating Authority's…**: The Adjudicating Authority passed an order in IA No. 1188/2020, concluding that there…

## 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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