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

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00378. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. YKM…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00378
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-ykm-entertainment-hotels-private-limited-f172f0c5

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. 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). Several applications (IAs) were filed, including those by GVPR Engineers Limited challenging the resolution plan approval process, and an application by the RP seeking approval of the resolution plan submitted by M/s. Square Four Housing & Infrastructure Development Private Limited.

## Facts

The State Bank of India initiated CIRP against YKM Entertainment & Hotels Private Limited under Section 7 of IBC. Dantu Indu Sekhar was appointed as RP. The RP invited Expression of Interest (EOI) and received multiple resolution plans. GVPR Engineers Limited, an applicant, challenged the resolution process, alleging irregularities in the modification of plans and consideration of offers. The CoC approved the resolution plan of Square Four Housing & Infrastructure Development Private Limited. GVPR Engineers claimed that its revised offer of Rs. 90 crores was not duly considered. The RP and CoC contended that the process was fair, and the approved plan maximized asset value. The NCLT considered whether the CoC and RP complied with IBC regulations and whether the

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## Issues and analysis

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

**Ratio:** Regulation 39(1A) of the CIRP Regulations allows the Resolution Professional to permit

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

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**Interpretation:** The interpretation of Regulation 39(1A) hinges on whether the word 'may' is

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**Application:** The NCLT applied the ratio to the facts by noting that the CoC's actions in

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## Parties

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

## Timeline

- **2022-01-05 — Admission of Section 7…**: The application under Section 7 filed by the State Bank of India (financial creditor)…
- **2022-01-05 — Appointment of Interim…**: Sri Dantu Indu Sekhar was appointed as Interim Resolution Professional, who was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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