# In the matter of Coatal Proejcts Ltd. CP(IB) No. 593-KB-2017

> NCLT judgment dated 2018-12-06. Citation: TCN-2018-NCLT-00149. State Bank of India filed CP(IB) No. 593/KB/2017 under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 Dec 2018
- **Citation:** TCN-2018-NCLT-00149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coatal-proejcts-ltd-cpib-no-593-kb-2017-cf6891d0

## Summary

### Background

State Bank of India filed CP(IB) No. 593/KB/2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Coastal Projects Limited. The application was admitted on January 5, 2018, and an Interim Resolution Professional (IRP) was appointed. Public announcements were made to invite prospective resolution applicants. Only one resolution plan was submitted by Mantena Engitec Private Limited. The resolution plan underwent negotiations and deliberations, and a revised plan was submitted on September 7, 2018. The Committee of Creditors (CoC) did not approve the plan, with 88.04% voting against it and only 11.96% voting in favor. The extended period of CIRP expired on October 1, 2018.

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Coastal Projects Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on January 5, 2018, and Mr. Ravi Sankar Devarakonda was appointed as the Interim Resolution Professional (IRP). A public announcement was made, inviting resolution plans. Mantena Engitec Private Limited submitted the only resolution plan. The Committee of Creditors (CoC) convened meetings to negotiate the resolution plan. A revised resolution plan was submitted on September 7, 2018. The CoC rejected the resolution plan on September 26, 2018, with 88.04% voting against and 11.96% voting in favor. The rejection was primarily due to disagreements over a performance bank

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can …

**Ratio:** Section 12 of the Insolvency and Bankruptcy Code, 2016, stipulates that the CIRP must be

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**Reasoning:** The Adjudicating Authority observed that the CIRP period had already expired on October

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**Interpretation:** Section 12 of the I&B Code sets a strict timeline for the completion of the

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**Application:** In this case, the CIRP period had expired, and the CoC had decided to proceed

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## Parties

- **Judges:** Jinan…
- **Appellants:** State Bank of…
- **Respondents:** Coastal Projects…; Coastal Projects…

## Timeline

- **2017-01-01 — Filing of CP(IB) No.…**: State Bank of India filed CP(IB) No. 593/KB/2017 for initiating CIRP against Coastal…
- **2018-01-05 — Admission of Ap…**: The application was admitted, and Mr. Ravi Sankar Devarakonda was appointed as the…

## 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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