# Approval of Resolution Plan - Frugal Developers Private Limited

> NCLT judgment dated 2024-08-01. Citation: TCN-2024-NCLT-00898. The case pertains to IA No. 21 of 2024 filed by Mr. Anil Kumar Singhal, the Resolution…

- **Court:** NCLT
- **Order date:** 1 Aug 2024
- **Citation:** TCN-2024-NCLT-00898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-frugal-developers-private-limited-bfed7858

## Summary

### Background

The case pertains to IA No. 21 of 2024 filed by Mr. Anil Kumar Singhal, the Resolution Professional (RP) of Frugal Developers Private Limited, under Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking approval of the resolution plan submitted by Appu Financial Services Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against Frugal Developers Private Limited based on a petition filed by Covet Financial Service Private Limited under Section 7 of the IBC, which was admitted on 03.07.2023. The RP has sought reliefs including the approval of the resolution plan, declaration that the plan is binding on all stakeholders, and any other orders deemed fit.

## Facts

Covet Financial Service Private Limited initiated CIRP against Frugal Developers Private Limited under Section 7 of IBC, which was admitted on 03.07.2023. Anil Kumar Singhal was appointed as the IRP and later confirmed as RP. The RP made a public announcement on 05.07.2023. The CoC consisted of Covet Financial Service Private Limited and Lenient Consultants Private Limited, representing 100% voting share. The admitted claim of the two Financial Creditors was Rs. 1,96,15,658/-. Eleven CoC meetings were held. The 'Form-G' was published on 01.09.2023. Appu Financial Services Limited submitted a resolution plan, which was approved by the CoC with 100% votes on 10.04.2024. The resolution plan proposed a payment of Rs. 10,00,000/- towards CIRP costs and Rs. 18,10,000 to

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Appu Financial Services Limited should be approved under …

**Ratio:** The commercial wisdom of the CoC is paramount in approving a resolution plan, as held by

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**Reasoning:** The CoC approved the resolution plan with 100% voting share, indicating their

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**Interpretation:** Section 30(6) of the IBC requires the Adjudicating Authority to approve a

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**Application:** The resolution plan was approved by the CoC with 100% voting share, and the

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** Anil Kumar…
- **Respondents:** Frugal Developers…; Covet Financial…

## Timeline

- **2023-03-07 — Admission of Section 7…**: Section 7 application filed by Covet Financial Service Private Limited against Frugal…
- **2023-05-07 — Public Annou…**: Public announcement made in…

## 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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