# In the matter of PRC International Hotels Pvt. Ltd. MA-490-2019 In CP-540-IB-2018

> NCLT judgment dated 2019-05-27. Citation: TCN-2019-NCLT-03175. The case involves an application (MA/490/2019) in CP/540/IB/2018. The Resolution Professional's…

- **Court:** NCLT
- **Order date:** 27 May 2019
- **Citation:** TCN-2019-NCLT-03175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prc-international-hotels-pvt-ltd-ma-490-2019-in-cp-540-ib-2018-9773fcd2

## Summary

### Background

The case involves an application (MA/490/2019) in CP/540/IB/2018. The Resolution Professional's counsel submitted that the applicant's net worth statement was not based on audited financial statements for the last three years. The applicant claimed to have property worth Rs. 15 Crores and wanted to present it to the Resolution Professional to satisfy the 'Expression of Interest' criteria. The Resolution Professional's counsel stated that the applicant was given ample opportunities but failed to support the net worth statement with documentary proof, leading to the return of the applicant's DD of Rs. 10 lakhs.

## Facts

The applicant, M. Gagan Bothra, filed an application (MA/490/2019) in CP/540/IB/2018. The Resolution Professional's counsel argued that the net worth statement submitted by the applicant was not based on audited financial statements for the past three years. The applicant claimed to possess property worth Rs. 15 Crores, as per market value, and intended to present this information to the Resolution Professional to meet the 'Expression of Interest' criteria. The Resolution Professional's counsel stated that the applicant was given ample opportunities to provide documentary proof for their net worth statement, but failed to do so. Consequently, the Demand Draft (DD) of Rs. 10 lakhs submitted by the applicant was returned. The applicant's inability to provide audited

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## Issues and analysis

### Issue 1: Whether the net worth statement submitted by the Applicant is valid without being based on audited …

**Ratio:** The ratio is that a net worth statement should ideally be supported by audited financial

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**Reasoning:** The court acknowledged the Resolution Professional's concern that the net worth statement

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**Interpretation:** The interpretation is that while unaudited statements may be considered, they

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**Application:** In this case, the applicant's failure to provide audited statements weakened

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** M.Gagan B…
- **Respondents:** PRC INTERNATIONAL…; S.RAJENDR…

## Timeline

- **2019-05-27 — Hearing…**: Hearing of Chennai Bench, Chennai National…

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