# In the matter of Konaseema Gas Power Ltd. IA No. 840 & 927-2020 in CP (IB) No. 458-7-HDB-2018

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01851. The case involves IA No. 840/2019 filed by the Resolution Professional (RP) under Section 33 of…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/konaseema-gas-power-ltd-ia-no-840-927-2020-in-cp-ib-no-458-7-hdb-2018-61a0cff0

## Summary

### Background

The case involves IA No. 840/2019 filed by the Resolution Professional (RP) under Section 33 of the IB Code, seeking liquidation of the Corporate Debtor, Konaseema Gas Power Limited. IA No. 927/2019 was filed by an unsuccessful resolution applicant seeking directions to the CoC to consider and approve its resolution plan. The CIRP was initiated following the admission of an application filed by the Financial Creditor under Section 7 of the IB Code. The RP had invited Expression of Interest (EoI) for submission of resolution plans, and Amaravathi Textiles Private Limited submitted a resolution plan. The CoC extended the date for filing resolution plans, and the RP filed an application for extension of the CIRP period. The CoC found the resolution plan submitted by

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## Facts

Konaseema Gas Power Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application by a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC). CA.Kambhammettu Sri Vamsi was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional (RP). The RP invited Expression of Interest (EoI) for resolution plans, with Amaravathi Textiles Private Limited and Karthik Rukmini Energy Limited submitting applications. Amaravathi Textiles Private Limited submitted a resolution plan, which was later found to be low and conditional by the Committee of Creditors (CoC). The CoC extended the date for filing resolution plans and approved an extension of the CIRP period. The RP filed IA No. 840/2019

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should direct the CoC to consider and approve the resolution …

**Ratio:** A resolution applicant cannot claim a vested right that his Resolution plan be

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**Reasoning:** The Adjudicating Authority observed that sufficient opportunity was provided to the

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**Interpretation:** This legal principle clarifies that the CoC has the authority to make decisions

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**Application:** The Adjudicating Authority applied this principle by recognizing that the CoC

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Amaravathi…
- **Respondents:** Konaseema Gas…

## Timeline

- **2018-12-18 — CIRP Init…**: Application filed by the Financial Creditor U/s.7 of the Code, was admitted for CIRP vide…
- **2019-03-02 — Advertisement…**: The Resolution Professional called for Expression of Interest for submission of…

## 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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