# In the matter of Wig Associates Pvt. Ltd. MA No. 435-2018 IN CP No. 1214-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-06-04. Citation: TCN-2018-NCLT-01333. The case involves a resolution plan submitted by Mr. Mahendra Wig, related to the promoter…

- **Court:** NCLT
- **Order date:** 4 Jun 2018
- **Citation:** TCN-2018-NCLT-01333
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wig-associates-pvt-ltd-ma-no-435-2018-in-cp-no-1214-ibc-nclt-mb-mah-2017-0930d6de

## Summary

### Background

The case involves a resolution plan submitted by Mr. Mahendra Wig, related to the promoter directors of the Corporate Debtor Company, Wig Associates Private Limited. The company was admitted into Corporate Insolvency Resolution Process (CIRP) on 24th August 2017, following a petition filed on 19th July 2017 by Wig Associates Private Limited itself, due to an admitted debt of Rs. 4,85,14,000/- to Bank of Baroda. An interim resolution professional, Mr. S.K. Gola, was appointed. The Resolution Professional submitted progress reports and appraised the financial position. The Bank of Baroda, the sole financial creditor, approved a One Time Settlement (OTS) offer issued by Mr. Mahendra Wig. The resolution plan was approved in the fourth meeting held on 20th April 2018.

## Facts

Wig Associates Private Limited (WAPL), the Corporate Debtor, initiated Corporate Insolvency Resolution Process (CIRP) against itself due to a debt of Rs. 4,85,14,000/- to Bank of Baroda (BOB). The petition was admitted on 24th August 2017. Mr. Mahendra Wig, related to the promoter directors of WAPL, submitted a resolution plan. BOB, the sole financial creditor, approved a One Time Settlement (OTS) offer from Mr. Wig. The resolution plan proposed an infusion of Rs. 326.50 Lakhs. The liquidation value available to operational creditors was nil. The resolution plan proposed settling operational creditors at 5% of their dues. Mr. Wig had already paid Rs. 103 Lakhs to BOB towards the OTS proposal. Section 29-A of the Insolvency and Bankruptcy Code (IBC), 2016, which

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mr. Mahendra Wig, who is related to the Promoter Directors …

**Ratio:** The principle is that amendments to statutes affecting legal rights are presumed to be

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**Reasoning:** The court reasoned that the CIRP had commenced before the introduction of Section 29-A.

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**Interpretation:** Section 29-A disqualifies certain individuals, including those connected to the

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**Application:** Since the CIRP was initiated before Section 29-A came into effect, the court

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Wig Associates…

## Timeline

- **2017-07-19 — Petition…**: M/s. Wig Associates Private Limited filed a petition under section 10 of I&B Code as a…
- **2017-08-24 — Petition Ad…**: An order was pronounced in C.P. No. 1214/I&BP/2017 through which the Petition was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 29 — Preparation of information memorandum](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-29)

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