# In the matter of City Mall Vikash Private Limited C.A. (IB) No. 1577 & 1650-KB-2019 in C.P.(IB) NO. 429-KB-2018

> NCLT judgment dated 2020-07-10. Citation: TCN-2020-NCLT-01045. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 10 Jul 2020
- **Citation:** TCN-2020-NCLT-01045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/city-mall-vikash-private-limited-ca-ib-no-1577-1650-kb-2019-in-cpib-no-429-kb-20-084f0946

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and Rule 11 of the National Company Law Tribunal Rules, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) of City Vikash Mall Private Limited. Punjab National Bank, the Financial Creditor, initiated CIRP against the Corporate Debtor. The Resolution Plan submitted by M/s Shrawan Kumar Agrawal Consortium was approved by the Committee of Creditors (CoC). However, other Resolution Applicants challenged this approval, leading to directions for fresh bidding. An appeal was filed before the NCLAT, which set aside the Tribunal's order and remitted the matter back to the Adjudicating Authority for approval of the Resolution Plan in light of NCLAT's directions.

## Facts

Punjab National Bank, as a Financial Creditor, initiated CIRP against City Vikash Mall Private Limited, the Corporate Debtor. The application to initiate CIRP was approved on 2019-02-26. M/s Shrawan Kumar Agrawal Consortium's Resolution Plan was initially approved by the CoC. Other Resolution Applicants, Rituraj Steel Pvt. Ltd. and Phil Minerals Beneficiation & Energy Pvt. Ltd., challenged this approval. The Adjudicating Authority ordered fresh bidding on 2019-12-10. M/s Shrawan Kumar Agrawal Consortium appealed to the NCLAT, which set aside the Adjudicating Authority's order on 2020-03-05 and remitted the matter back for approval of the Resolution Plan. The Resolution Applicant raised concerns about the disconnection of electricity to the Corporate Debtor due to

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## Issues and analysis

### Issue 1: Whether the Resolution Plan of M/s Shrawan Kumar Agrawal Consortium should be approved in …

**Ratio:** The directions of the appellate tribunal are

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**Reasoning:** The Hon'ble NCLAT had set aside the order of the Adjudicating Authority directing fresh

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**Interpretation:** The appellate tribunal's decision is superior and must be followed by the lower

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**Application:** The Adjudicating Authority, having been directed by the NCLAT, is bound to

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Punjab National…
- **Respondents:** City Vikash Mall…
- **Advocates:** Ratul…; Pallavi G…; +3 more

## Timeline

- **2019-02-26 — CIRP Initiati…**: The Adjudicating Authority allowed the application to initiate CIRP against the Corporate…
- **2019-12-10 — Order for Fres…**: The Adjudicating Authority passed an order directing fresh bidding for the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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