# In the matter of Royal Splendour Developers Private Limited MA 1234-2019 in CP-628-IB-CB-2017

> NCLT judgment dated 2019-12-23. Citation: TCN-2019-NCLT-00020. The case involves an application filed under sections 30 & 31 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Dec 2019
- **Citation:** TCN-2019-NCLT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-splendour-developers-private-limited-ma-1234-2019-in-cp-628-ib-cb-2017-597a12e5

## Summary

### Background

The case involves an application filed under sections 30 & 31 of the Insolvency & Bankruptcy Code (IBC), 2016, read with Regulation 39 of IBBI (IRP for Corporate Persons) Regulations, 2016, for the approval of a Resolution Plan for Royal Splendour Developers Private Limited. The Committee of Creditors (CoC) approved the plan with a voting share of 70.93% in its meeting held on 30.10.2019. The Resolution Plan is valued at ₹25 Crores, with ₹15 Crores to be infused by the Resolution Applicant and ₹15 Crores by the home buyers. The admitted claim against the Corporate Debtor is ₹64,56,36,381.

## Facts

Royal Splendour Developers Private Limited is undergoing corporate insolvency resolution process (CIRP). An application was filed for approval of the resolution plan under Section 30 & 31 of IBC, 2016. The CoC approved the resolution plan with 70.93% voting share on 30.10.2019. The resolution plan is valued at ₹25 Crores, with ₹15 Crores to be infused by the Resolution Applicant and ₹15 Crores by the home buyers. The admitted claim against the Corporate Debtor is ₹64,56,36,381. The resolution plan proposes settlements to secured financial creditors, operational creditors, and home buyers. The initial IRP, Mr. Arumugam, failed to retrieve documents, and was replaced by Mrs. Kavitha Surana. The Resolution Applicant did not provide a Performance Guarantee of ₹75

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted for Royal Splendour Developers Private Limited should be …

**Ratio:** A Resolution Plan can be approved if it meets the requirements of the IBC, including

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**Reasoning:** The NCLT considered the CoC's approval of the Resolution Plan with a 70.93% voting share.

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**Interpretation:** Sections 30 & 31 of the IBC outline the process for submission and approval

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**Application:** The NCLT approved the Resolution Plan after considering the CoC's approval and

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Kavitha S…
- **Respondents:** Royal Splendour…

## Timeline

- **2017-12-04 — Company Petition…**: Company Petition…
- **2019-10-30 — CoC Appr…**: CoC approved the Resolution Plan…

## Legal provisions

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

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