# In the matter of Shivkala Developers Pvt. Ltd. CA. 734-2018, IA. 5026, IA 5027 and IA. 5028-ND-2021 in Company Petition No. (IB)-525 (ND)-2017

> NCLT judgment dated 2021-11-24. Citation: TCN-2021-NCLT-00428. The Corporate Insolvency Resolution Process (CIRP) for M/s Shivkala Developers Pvt. Ltd. was…

- **Court:** NCLT
- **Order date:** 24 Nov 2021
- **Citation:** TCN-2021-NCLT-00428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivkala-developers-pvt-ltd-ca-734-2018-ia-5026-ia-5027-and-ia-5028-nd-2021-in-c-8df52c0e

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) for M/s Shivkala Developers Pvt. Ltd. was initiated by Noble Cooperative Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. Anup Kumar was appointed as the Interim Resolution Professional and later confirmed. The Committee of Creditors (CoC) approved a resolution plan submitted by M/s Cimco Projects Ltd. However, the Resolution Applicant (RA) did not appear on several dates, leading to the issuance of bailable warrants. The RA then filed applications for cancellation of these warrants, citing lack of awareness of the proceedings. The RP filed CA 734/2018 for approval of the resolution plan, but the RA failed to furnish a performance guarantee as directed by the Tribunal. The CoC approved the resolution

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## Facts

On 2018-02-12, the Corporate Insolvency Resolution Process (CIRP) was initiated for M/s Shivkala Developers Pvt. Ltd. based on an application by Noble Cooperative Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. Anup Kumar was appointed as the Interim Resolution Professional and later confirmed. The Committee of Creditors (CoC) approved a resolution plan submitted by M/s Cimco Projects Ltd. in their 10th meeting held on 2018-11-07. The Resolution Applicant (RA) failed to appear on multiple dates, leading to the issuance of bailable warrants. The RA filed applications for cancellation of these warrants, citing lack of awareness of the proceedings. The RP filed IA-734 of 2018 under Section 30(6) & 31 of the Code on 2018-09-11 for approval of the

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## Issues and analysis

### Issue 1: Whether the Tribunal should approve the Resolution Plan under Section 30(6) and Section 31 of the …

**Ratio:** The Tribunal is not obligated to approve a resolution plan if the Resolution Applicant

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**Reasoning:** The Resolution Applicant failed to furnish the performance guarantee as directed by the

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**Interpretation:** Sections 30(6) and 31 of the IBC outline the process for approval of a

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**Application:** In this case, the Resolution Applicant's failure to furnish the performance

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## Parties

- **Judges:** SH. BHASKARA…; SH. L. N.…
- **Appellants:** M/s Noble…
- **Respondents:** M/s Shivkala…

## Timeline

- **2017-01-01 — Company Petiti…**: Company Petition No.…
- **2018-02-12 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for M/s Shivkala Developers Pvt.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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