# In the matter of Superna Dhawan & Anr. Vs. Bharati defence And Infrastructure Ltd. & Ors CA(AT)(insolvency) 195-2019

> NCLAT judgment dated 2019-05-14. Citation: TCN-2019-NCLAT-00552. The case involves an appeal against the order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 14 May 2019
- **Citation:** TCN-2019-NCLAT-00552
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/superna-dhawan-anr-vs-bharati-defence-and-infrastructure-ltd-ors-ca-9a56157c

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which rejected a resolution plan submitted by Edelweiss Asset Reconstruction Company Ltd. and ordered the liquidation of Bharti Defence and Infrastructure Ltd. The resolution plan had been approved by the Committee of Creditors with a vote share of 94.3%. The Adjudicating Authority's decision was based on its assessment of the resolution plan and concerns regarding the company's operations and financial viability. The appellant, a shareholder, challenged the liquidation order, alleging material irregularity and fraud by the Resolution Professional.

## Facts

Bharti Defence and Infrastructure Ltd. ('Corporate Debtor') faced insolvency proceedings. A resolution plan submitted by Edelweiss Asset Reconstruction Company Ltd. was approved by the Committee of Creditors with a 94.3% vote share. The Adjudicating Authority (NCLT), Mumbai Bench, rejected the resolution plan on January 14, 2019, and ordered liquidation under Section 33 of the IBC. The Corporate Debtor held a license from the Ministry of Defence to build defence warships and had substantial orders under execution. The company had over 850 employees whose salaries were unpaid. The Resolution Professional was alleged to have delegated duties and responsibilities and was not independent. The Adjudicating Authority directed the liquidator to sell the Corporate Debtor as a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the resolution plan and ordering …

**Ratio:** The Adjudicating Authority has the power to reject a resolution plan if it does not meet

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**Reasoning:** The Adjudicating Authority considered the resolution plan and found it to be deficient,

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**Interpretation:** The Adjudicating Authority's decision to reject the resolution plan and order

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**Application:** In this case, the Adjudicating Authority found that the resolution plan was not

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Superna D…
- **Respondents:** Bharti Defence…

## Timeline

- **2019-01-14 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected the…
- **2019-05-14 — Order by Appellate…**: The appellate tribunal disposed of the appeal with directions to the liquidator to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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