# In the matter of IVRCL Limited IA No. 544 & 680-2018 in CP (IB) No. 294-7-HDB-2017

> NCLT judgment dated 2019-07-26. Citation: TCN-2019-NCLT-02266. The case involves the corporate insolvency resolution process (CIRP) of IVRCL Limited. State…

- **Court:** NCLT
- **Order date:** 26 Jul 2019
- **Citation:** TCN-2019-NCLT-02266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ivrcl-limited-ia-no-544-680-2018-in-cp-ib-no-294-7-hdb-2017-81158a08

## Summary

### Background

The case involves the corporate insolvency resolution process (CIRP) of IVRCL Limited. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against IVRCL, which was admitted, initiating CIRP. A resolution professional (RP) was appointed and later confirmed by the Committee of Creditors (CoC). Public announcements were made to invite expression of interest (EOI) for resolution plans. Several resolution plans were submitted, including one by First Global Finance Private Limited and later a consortium. The CoC rejected these plans due to deviations from the EOI, non-submission of earnest money deposit (EMD), and non-compliance with minimum qualification criteria. The CIRP period was extended, but ultimately no valid

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## Facts

State Bank of India initiated CIRP against IVRCL Limited under Section 7 of IBC, which was admitted on 2018-02-23. Sutanu Sinha was appointed as the Resolution Professional. Public announcement was made inviting Expression of Interest (EOI) from prospective resolution applicants. First Global Finance Pvt Limited submitted a resolution plan, later joined by a consortium including Shankar Sharma, Devina Mehra, and Phoenix ARC Private Limited. The CoC rejected the resolution plan due to deviations from the EOI, non-submission of Earnest Money Deposit (EMD), and non-compliance with minimum qualification criteria. The Resolution Professional issued a second invitation for EOI. The consortium submitted multiple revised resolution plans. The CoC rejected the revised

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The commercial wisdom of the CoC is paramount and cannot be questioned or intervened by

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**Reasoning:** The Adjudicating Authority is not endowed with the jurisdiction or authority to analyze

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**Interpretation:** The IBC emphasizes the commercial autonomy of the CoC in evaluating resolution

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**Application:** In this case, the Adjudicating Authority recognized that the CoC had exercised

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** First Global…
- **Respondents:** IVRCL Li…; State Bank of…
- **Advocates:** Nirav…; Alay R…; +6 more

## Timeline

- **2018-02-23 — CIRP Init…**: State Bank of India's application under Section 7 of IBC against IVRCL Limited was…
- **2018-05-09 — Public Annou…**: Public announcement was issued inviting…

## 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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