# In the matter of Prime Retail India Ltd. IA(IB) No. 322-KB-2020 in CP(IB) No. 1127-KB-2020

> NCLT judgment dated 2020-07-15. Citation: TCN-2020-NCLT-01036. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 15 Jul 2020
- **Citation:** TCN-2020-NCLT-01036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prime-retail-india-ltd-iaib-no-322-kb-2020-in-cpib-no-1127-kb-2020-d5904696

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) for Prime Retail India Ltd. The CIRP was initiated following an order dated 27/08/2019. An Interim Resolution Professional (IRP), Mr. Kamalesh Kumar Singhania, was appointed, and a Committee of Creditors (CoC) was formed. The CoC confirmed his appointment as Resolution Professional. The Resolution Professional invited Expression of Interest (Eol) and received two Eols from prospective resolution applicants. The CoC deliberated and negotiated with the Resolution Applicants who submitted their Resolution Plans.

## Facts

Prime Retail India Ltd. was admitted into Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016, following an order dated 27/08/2019. Mr. Kamalesh Kumar Singhania was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed, and Mr. Singhania's appointment was confirmed as Resolution Professional with 86.12% vote share. An invitation for Expression of Interest (Eol) was published, resulting in two Eols from Mrs. Shakuntala Devi and M/s. BMS Commercial Pvt. Ltd. The CoC approved the RFRP and shared it with the prospective resolution applicants. Two Resolution Plans were received on 24/01/2020. Mrs. Shakuntala Devi revised her offer on 13/02/2020. The CoC approved the Resolution

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by BMS Commercial Pvt. Ltd. should be approved under Section …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016, provides for the approval of a

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**Reasoning:** The CoC approved the resolution plan of BMS Commercial Pvt. Ltd. with a majority vote of

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a resolution plan

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**Application:** In this case, the CoC approved the resolution plan of BMS Commercial Pvt. Ltd.

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Swatch Group…
- **Respondents:** Prime Retail…

## Timeline

- **2019-08-27 — Order for CIRP…**: Order passed in CP(IB) No. 1127/KB/2019 initiating Corporate Insolvency Resolution…
- **2019-08-27 — Appointment of Interim…**: Mr. Kamalesh Kumar Singhania appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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