# In the matter of Palm Lagoon Backwater Resorts Private Limited MA/113/KOB/2020 in TIBA/9/KOB/2019

> NCLT judgment dated 2020-09-10. Citation: TCN-2020-NCLT-00653. The case involves a resolution plan for Palm Lagoon Backwater Resorts Private Limited (PLBRPL),…

- **Court:** NCLT
- **Order date:** 10 Sept 2020
- **Citation:** TCN-2020-NCLT-00653
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/palm-lagoon-backwater-resorts-private-limited-ma113kob2020-in-tiba9kob2019-982be7b2

## Summary

### Background

The case involves a resolution plan for Palm Lagoon Backwater Resorts Private Limited (PLBRPL), a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP was initiated following a default on a corporate guarantee provided by PLBRPL to secure the debt of Neesa Leisure Ltd. The Asset Reconstruction Company (India) Limited (ARCIL) filed an application under Section 7 of the IBC, which was admitted by the NCLT Chennai Bench. Subsequently, the case was transferred to the NCLT Kochi Bench. The resolution professional (RP) invited resolution plans, and Invent Assets Securitisation and Reconstruction Private Limited submitted a plan that was approved by the Committee of Creditors (CoC) with 100%

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## Facts

Palm Lagoon Backwater Resorts Private Limited (PLBRPL) faced insolvency due to a corporate guarantee it provided for Neesa Leisure Ltd, which defaulted on its obligations to United Bank of India. ARCIL acquired the debt and initiated CIRP against PLBRPL under Section 7 of IBC. The NCLT admitted the application and appointed R. Velu as the Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). The RP constituted a Committee of Creditors (CoC). Invent Assets Securitisation and Reconstruction Private Limited submitted a resolution plan, proposing an investment of INR 100 Lakhs. The CoC approved the plan with 100% voting rights. The plan includes restructuring PLBRPL's capital, settling creditor claims, and obtaining necessary

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Invent Assets Securitisation and Reconstruction Private …

**Ratio:** The viability and feasibility of a resolution plan are crucial for its approval under the

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**Reasoning:** The NCLT considered the CoC's assessment that the resolution plan submitted by Invent

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**Interpretation:** The IBC mandates that a resolution plan must be viable and feasible, meaning it

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**Application:** In this case, the NCLT relied on the CoC's assessment and the details of the

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** R.Ve…
- **Respondents:** Palm Lagoon…

## Timeline

- **2018-10-12 — Application…**: Asset Reconstruction Company (India) Limited filed an application CP/(IB) No. 1312/2018…
- **2019-09-20 — Application A…**: The application was admitted by the tribunal vide Order dated 20.09.2019 and Mr. R. Velu…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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