# In the matter of S. Boomadevi & Anr. Vs. PRC International Hotels Pvt. Ltd. & Ors. CA(AT)(Insolvency)No. 1212 of 2019

> NCLAT judgment dated 2019-11-13. Citation: TCN-2019-NCLAT-00146. The Appellant, a shareholder, filed an appeal against an order dated August 27, 2019, passed…

- **Court:** NCLAT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLAT-00146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/s-boomadevi-anr-vs-prc-international-hotels-pvt-ltd-ors-ca-9879cbb7

## Summary

### Background

The Appellant, a shareholder, filed an appeal against an order dated August 27, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai. The impugned order approved the 'resolution plan' submitted by ‘Sai Baba Business solutions Pvt. Ltd.' The appellant contended collusion between the 7th & 8th Respondent and the erstwhile Managing Director, involving Rupees Five Crores in cash. The appeal was filed under Section 61(3) of the I&B Code.

## Facts

S. Boomadevi & Anr. filed an appeal against the order of the Adjudicating Authority (NCLT, Chennai) which approved the resolution plan of Sai Baba Business Solutions Pvt. Ltd. The appeal was filed under Section 61(3) of the Insolvency and Bankruptcy Code (I&B Code). The appellant alleged collusion between the 7th & 8th Respondent and the erstwhile Managing Director, involving Rupees Five Crores in cash. The Committee of Creditors had approved the resolution plan with 89.51% of the voting share. The resolution plan provided for distribution of Rs. 28,55,06,654/- to secured and unsecured creditors. Unsecured Financial Creditors were provided with 27.53% of their claims, and Operational Creditors' claims reached 70 to 80% as noticed by the Adjudicating Authority.

## Issues and analysis

### Issue 1: Whether the approved resolution plan is in contravention of the provisions of any law for the time …

**Ratio:** A resolution plan can be challenged if it

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**Reasoning:** The court examined whether the resolution plan violated any existing laws. The court

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**Interpretation:** This issue involves interpreting the provisions of the I&B Code and other

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**Application:** The court applied this principle to the facts of the case and determined that

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…
- **Appellants:** S. Boom…
- **Respondents:** M/s. PRC Internati…

## Timeline

- **2019-08-27 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai,…
- **2019-11-13 — Appeal F…**: The Appellant 'Shareholder' filed an appeal against the order dated 27th August, 2019…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(3) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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