# In the matter of Shri Madhukar Shetty vs. Bank of Baroda & Ors.

> NCLAT judgment dated 2024-07-02. Citation: TCN-2024-NCLAT-00361. The appeal was filed by the ex-Director of the Corporate Debtor, Genesis Resorts Pvt. Ltd.,…

- **Court:** NCLAT
- **Order date:** 2 Jul 2024
- **Citation:** TCN-2024-NCLAT-00361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shri-madhukar-shetty-vs-bank-of-baroda-ors-176a04ce

## Summary

### Background

The appeal was filed by the ex-Director of the Corporate Debtor, Genesis Resorts Pvt. Ltd., against the order dated 20.12.2023 passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench-I, approving the resolution plan of the Successful Resolution Applicant (SRA) and dismissing the ex-Director's objection. The Corporate Debtor had availed a loan of Rs.149.05 cr from Bank of Baroda during 2012-2014 for constructing a hotel. After restructuring of credit facilities in 2015, the Corporate Debtor failed to repay the loan, leading to its classification as NPA in 2016. Bank of Baroda initiated CIRP, and the Adjudicating Authority admitted the Corporate Debtor into CIRP on 11.12.2019.

## Facts

Genesis Resorts Pvt. Ltd. (Corporate Debtor) availed a loan of Rs. 149.05 crore from Bank of Baroda (Financial Creditor) between 2012 and 2014 for hotel construction near Mumbai Airport. The Corporate Debtor's request for restructuring the credit facilities was approved by Bank of Baroda on 18.02.2015. The Corporate Debtor defaulted on repayments, leading to its account being classified as NPA on 30.11.2016. Bank of Baroda initiated Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority admitted the Corporate Debtor into CIRP on 11.12.2019. The Resolution Professional (RP) invited Expressions of Interest (EOI) and received 17 EOIs. M/s Finquest Solutions Pvt. Ltd. (SRA) submitted a resolution plan approved by the Committee of Creditors (CoC) with

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## Issues and analysis

### Issue 1: Whether the CIRP process was marred by irregularities due to incorrect valuation exercise conducted …

**Ratio:** The valuation conducted by IBBI registered valuers appointed post the admission of

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**Reasoning:** The NCLAT relied on the Supreme Court's judgment in M.K. Rajagopalan v. Dr. Periasamy

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**Interpretation:** The court interpreted that the valuation process under CIRP Regulations

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**Application:** The NCLAT applied the ratio to the present case, noting that the CoC approved

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Madhukar…
- **Respondents:** Genesis Resorts…; Bank of B…

## Timeline

- **2012-01-01 — Loan Avai…**: Genesis Resorts Pvt. Ltd. availed a loan of Rs. 149.05 crore from Bank of Baroda between…
- **2015-02-18 — Restructuring…**: Bank of Baroda approved the Corporate Debtor's request for restructuring the credit…

## 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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