# In the matter of Coral Infragold Private Limited IA No. 48-JPR-2021 in CP No. (IB)-170-7-JPR-2019

> NCLT judgment dated 2021-10-07. Citation: TCN-2021-NCLT-00785. The case involves an application filed by the Resolution Professional (RP) of Coral Infragold…

- **Court:** NCLT
- **Order date:** 7 Oct 2021
- **Citation:** TCN-2021-NCLT-00785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coral-infragold-private-limited-ia-no-48-jpr-2021-in-cp-no-ib-170-7-jpr-2019-e3ec5d96

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Coral Infragold Private Limited ('Corporate Debtor') under Section 60(5) of the Insolvency and Bankruptcy Code 2016 ('IBC'), seeking waivers and relaxations of certain compliances. The Corporate Insolvency Resolution Process (CIRP) was initiated by AU Small Finance Bank ('Financial Creditor') under Section 7 of the IBC. The application was admitted under a reverse CIRP mechanism, focusing on a specific real estate project, Coral Radha Krishna. The Adjudicating Authority had previously given directions to facilitate the reverse CIRP process. The RP faced non-cooperation from the suspended board of directors and sought clarification on compliances in the context of reverse CIRP.

## Facts

AU Small Finance Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Coral Infragold Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The application was admitted under a reverse CIRP mechanism, focusing on the real estate project Coral Radha Krishna. Mahesh Chandra Purohit was appointed as the Resolution Professional (RP). The RP filed an application seeking waivers and relaxations from certain compliances under the IBC, citing non-cooperation from the suspended board of directors and challenges in applying standard CIRP procedures in a reverse CIRP context. The RP also highlighted issues related to operational creditors' claims and the need for clarification on the treatment of these claims. The Committee of

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## Issues and analysis

### Issue 1: Whether the compliances stipulated in detail in Annexure-3 of the instant IA in relation to Section …

**Ratio:** The ratio is based on the principle that in a reverse CIRP, certain standard CIRP

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**Reasoning:** The court reasoned that since the CIRP is focused on a specific project and the

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**Interpretation:** The interpretation is that the IBC allows for flexibility in the application of

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**Application:** The ratio and reasoning were applied to waive/relax certain compliances related

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## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Respondents:** Coral Infragold…
- **Advocates:** Archit…

## Timeline

- **2020-11-25 — Adjudicating Authority…**: The Adjudicating Authority admitted the application filed by AU Small Finance Bank…
- **2021-02-26 — 4th CoC M…**: The financing plan submitted by Mr. Mahendra Kalla was agreed upon by the members of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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