# In the matter of C & C Towers Limited

> NCLT judgment dated 2023-10-19. Citation: TCN-2023-NCLT-01090. The case involves multiple applications (IA No. 572/2022, 32/2021, 166/2021, 179/2022) filed in…

- **Court:** NCLT
- **Order date:** 19 Oct 2023
- **Citation:** TCN-2023-NCLT-01090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/c-c-towers-limited-6aa9fd9c

## Summary

### Background

The case involves multiple applications (IA No. 572/2022, 32/2021, 166/2021, 179/2022) filed in connection with the Corporate Insolvency Resolution Process (CIRP) of C & C Towers Limited. The primary dispute revolves around the approval of a resolution plan for the corporate debtor, C & C Towers Limited, which is developing a Bus Terminal-cum-Commercial Complex at Mohali under a concession agreement with Greater Mohali Area Development Authority (GMADA). GMADA, being the land owner and a significant operational creditor, raised objections to the resolution plan, particularly concerning the concessions sought from it by the Resolution Applicant (Mahakram Developers Private Limited). The resolution plan proposed certain reliefs and concessions from GMADA,

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## Facts

C & C Towers Limited was undergoing CIRP due to financial difficulties. The company was developing a Bus Terminal-cum-Commercial Complex at Mohali under a concession agreement with GMADA. GMADA, as the land owner, was a major operational creditor. The Resolution Applicant, Mahakram Developers Private Limited, submitted a resolution plan that sought certain concessions from GMADA, including waivers of penalties, revision of concession fees, and modifications to the concession agreement. GMADA objected to the resolution plan, arguing that these concessions were not part of the original agreement and that the CoC could not dictate terms to the owner of the land. GMADA issued a notice dated 04.04.2016 to show cause to the Corporate Debtor as to why the said Concession

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should interfere with the commercial wisdom of the Committee of …

**Ratio:** The commercial wisdom of the CoC is paramount and the Adjudicating Authority has limited

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**Reasoning:** The court reasoned that the CoC is best positioned to assess the viability and

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**Interpretation:** This interpretation reinforces the principle that the IBC prioritizes the

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**Application:** The court applied this ratio by refusing to interfere with the CoC's approval

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Kusum Chadha &…
- **Respondents:** C & C Towers…

## Timeline

- **2009-04-15 — Concession Ag…**: GMADA and C & C Towers Limited entered into a concession agreement for the development of…
- **2016-04-04 — Show Cause…**: GMADA issued a notice to C & C Towers Limited to show cause why the concession agreement…

## 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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