# Approval of Resolution Plan - YKM Entertainment & Hotels Private Limited

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00367. The case involves a corporate insolvency resolution process (CIRP) initiated against YKM…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00367
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-ykm-entertainment-hotels-private-limited-9475b3fa

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) initiated against YKM Entertainment & Hotels Private Limited following the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) filed by State Bank of India. Mr. Dantu Indu Sekhar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP invited expressions of interest, received resolution plans, and conducted meetings with the Committee of Creditors (CoC). Several applications (IAs) were filed, including those by GVPR Engineers Limited challenging the resolution process and seeking to set aside the resolution plan approved by the CoC. The CoC approved a resolution plan submitted by M/s. Square Four

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## Facts

State Bank of India initiated CIRP against YKM Entertainment & Hotels Private Limited under Section 7 of IBC. Dantu Indu Sekhar was appointed as IRP and later RP. The RP invited expressions of interest (EOI), receiving 14, and shortlisted 6 resolution applicants. GVPR Engineers Limited, an applicant, submitted a resolution plan. The CoC extended the timeline for revised plans. GVPR Engineers Limited submitted revised bids, but the CoC approved Square Four Housing & Infrastructure Development Private Limited's plan on 13.01.2023. GVPR Engineers Limited challenged this, alleging irregularities and a higher bid. The RP argued that GVPR's later bids were after the cut-off date. The CoC's decision was based on commercial wisdom and evaluation matrix. GVPR Engineers

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## Issues and analysis

### Issue 1: Whether the Resolution Professional and the Committee of Creditors (CoC) failed to ensure …

**Ratio:** Regulation 39(1A) was inserted in the CIRP Regulations vide IBBI/2021-22/GN/REG078, dated

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**Reasoning:** The NCLT reasoned that the CoC has the discretion to request revisions to the resolution

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**Interpretation:** The interpretation of Regulation 39(1A) is not mandatory but directory as the

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**Application:** The NCLT found that the CoC did not violate Regulation 39 because the CoC has

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/s.GVPR Engineers…
- **Respondents:** YKM Entertainment…; M/s.YKM Entertainm…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition CP(IB) No.…
- **2022-01-05 — Admission of Ap…**: Application under Section 7 of IBC admitted, and CIRP initiated against YKM Entertainment…

## 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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