# In the matter of Mandhana Industries Limited IA No. 734-MB-2021 in C.P. (IB) No. 1399-MB-2017

> NCLT judgment dated 2021-05-19. Citation: TCN-2021-NCLT-02123. Formation Textiles LLC (FTL), the former Successful Resolution Applicant of Mandhana Industries…

- **Court:** NCLT
- **Order date:** 19 May 2021
- **Citation:** TCN-2021-NCLT-02123
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mandhana-industries-limited-ia-no-734-mb-2021-in-cp-ib-no-1399-mb-2017-9d75fe06

## Summary

### Background

Formation Textiles LLC (FTL), the former Successful Resolution Applicant of Mandhana Industries Limited (now GB Global Limited), filed an application (IA No. 734/MB/2021) seeking reliefs, including restraining the Resolution Professional (RP) and Committee of Creditors (CoC) from handing over the management of the Corporate Debtor to the New Resolution Applicant (Dev Land and Housing Private Limited (DLH)), and preventing the Tribunal from approving the Resolution Plan of the new Resolution Applicant. FTL's Resolution Plan could not be implemented, allegedly due to the callousness, misrepresentation, and fraudulent conduct of the RP in connivance with the CoC. FTL also alleged that the new Resolution Applicant is ineligible under Section 29A of the Insolvency and

…

## Facts

1. Formation Textiles LLC (FTL) was the former Successful Resolution Applicant for Mandhana Industries Limited (now GB Global Limited). FTL's resolution plan was not implemented.
2. Bank of Baroda and other financial creditors are part of the Committee of Creditors (CoC).
3. Dev Land and Housing Private Limited (DLH) is the new Resolution Applicant.
4. A lease-cum-sale agreement was entered into between the Corporate Debtor and Karnataka Industrial Area Development Board (KIADB) on 23.06.2008 for land allotment at ₹2.01 Crores.
5. A Memorandum of Understanding (MoU) was entered into between the Corporate Debtor and Bombay Rayons Fashion Limited (BRFL) on 25.01.2010 for the sale of the land for ₹2.25 Crores. Possession was handed over to R21 pending execution of the sale

…

## Issues and analysis

### Issue 1: Whether the Applicant has locus standi to object to the approval of the new Resolution Plan …

**Ratio:** Section 47 of the Code provides that only a ‘Creditor, Member or a Partner' of the

…

**Reasoning:** The Applicant not being a Creditor or Partner of the Corporate Debtor is not competent to

…

**Interpretation:** This section clarifies who has the right to challenge transactions in court. It

…

**Application:** Since the Applicant is not a Creditor or Partner of the Corporate Debtor, they

…

## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Formation…
- **Respondents:** Mandhana Industrie…; Bank of B…

## Timeline

- **2008-06-23 — Lease cum Sale…**: Corporate Debtor entered into a lease cum sale…
- **2010-01-25 — Memorandum of…**: Corporate Debtor entered into a Memorandum of Understanding (MoU) with Bombay Rayons…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/mandhana-industries-limited-ia-no-734-mb-2021-in-cp-ib-no-1399-mb-2017-9d75fe06