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

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00353. The case involves a corporate insolvency resolution process (CIRP) initiated against YKM…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-ykm-entertainment-hotels-private-limited-d71ba7a8

## 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), 2016, 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). Several applications (IAs) were filed, including IA No. 1233/2023, IA No. 192/2023, Intervention Petition No. 13/2023, and IA No. 547/2023, which were interconnected and heard together. The CIRP involved inviting expressions of interest, receiving resolution plans, and evaluating them by the Committee of Creditors (CoC).

## Facts

State Bank of India initiated CIRP against YKM Entertainment & Hotels Private Limited under Section 7 of IBC, which was admitted on 2022-01-05. Dantu Indu Sekhar was appointed as IRP and later confirmed as RP. The RP invited expressions of interest (EOI) in Form G on 2022-04-25, receiving 10 responses, but only two prospective resolution applicants (PRAs) were found eligible. The CoC advised improving the offered amount by 2022-02-27, and later decided to seek fresh EOIs on 2022-08-22. Fourteen resolution applicants submitted EOIs, with 11 found eligible. Six resolution applicants submitted resolution plans. The CoC evaluated these plans and extended the timeline for revised offers. The applicant in IA Nos. 1233, 547, and Intvn. P. 13 submitted a plan for Rs.63.7

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## Issues and analysis

### Issue 1: Whether the Resolution Professional and the Committee of Creditors (CoC) complied with the …

**Ratio:** The commercial wisdom of the CoC is paramount, and judicial intervention is limited to

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**Reasoning:** The NCLT relied on several Supreme Court judgments, including *Phoenix Arc Private

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**Interpretation:** Regulation 39(1A) of the CIRP Regulations, which allows for modification of the

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**Application:** The NCLT determined that the RP and CoC had acted within their competence by

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/s.GVPR Engineers…
- **Respondents:** YKM Entertainment…; DANTU INDU…
- **Advocates:** Avinash…; Rubaina S K…; +5 more

## Timeline

- **2022-01-05 — Admission of Section 7…**: State Bank of India's application under Section 7 of IBC against YKM Entertainment &…
- **2022-04-25 — Invitation of…**: Expression of Interest…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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