# Approval of Resolution Plan - Satra Properties (India) Limited

> NCLT judgment dated 2024-07-26. Citation: TCN-2024-NCLT-00944. The case involves an intervention petition filed by Mr. Praful Nanji Satra, an…

- **Court:** NCLT
- **Order date:** 26 Jul 2024
- **Citation:** TCN-2024-NCLT-00944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-satra-properties-india-limited-a0c44135

## Summary

### Background

The case involves an intervention petition filed by Mr. Praful Nanji Satra, an ex-promoter/director, objecting to the approval of a resolution plan for Satra Properties (India) Limited. The applicant contends that the assets of the corporate debtor are undervalued, affecting payouts to secured creditors and triggering his liability as a guarantor. The resolution plan was submitted by a consortium of MJ Shah Enterprises, MJ Shah Realtors LLP, and Centrio Lifespaces Limited. The applicant claims the valuation of land in Kalina and Jodhpur is incorrect, and ARCIL, a major secured creditor, has not formally accepted the plan. The resolution professional (RP) argues the applicant lacks locus standi and is attempting to derail the CIRP process. The RP also states that the

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## Facts

Mr. Praful Nanji Satra, an ex-promoter/director of Satra Properties (India) Limited, filed an intervention petition objecting to the approval of a resolution plan submitted by MJ Shah Enterprises, MJ Shah Realtors LLP, and Centrio Lifespaces Limited. The applicant claimed the assets of the corporate debtor were undervalued, particularly land parcels in Kalina and Jodhpur. He argued the valuation of land in Kalina and Jodhpur is incorrect, and ARCIL, a major secured creditor, has not formally accepted the plan. The applicant also claimed that the reduced payout arising out of undervaluation of properties will trigger his liability in capacity as the guarantor of the Corporate Debtor. The Resolution Professional (RP) argued the applicant lacks locus standi and is

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## Issues and analysis

### Issue 1: Whether the valuation of the Corporate Debtor's assets was conducted correctly and whether the …

**Ratio:** The CoC has the authority to approve a resolution plan based on its commercial wisdom,

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**Reasoning:** The NCLT noted that the CoC members were aware of the property details and valuations,

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**Interpretation:** The CoC's commercial wisdom is paramount in approving a resolution plan, and

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**Application:** In this case, the NCLT found that the CoC was adequately informed about the

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Praful Nanj…; Praful Nanj…
- **Respondents:** Satra Properties…; Vaishali Arun…

## Timeline

- **2020-08-03 — Initiation…**: CIRP was initiated against Satra Properties…
- **2020-08-03 — Appointment…**: Mr. Devarajan Raman was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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