# In the matter of Dharti Dredging And Infrastructure Limited

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-02421. The case involves IA(IBC) 385 & 407/2023 in CP(IB) No. 329/7/HDB/2020, initiated under Section…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-02421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dharti-dredging-and-infrastructure-limited-40fcf2e9

## Summary

### Background

The case involves IA(IBC) 385 & 407/2023 in CP(IB) No. 329/7/HDB/2020, initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. State Bank of India is the Financial Creditor, and Dharti Dredging and Infrastructure Ltd is the Corporate Debtor. The Resolution Professional, Mr. Madhusudhan Rao Gonugunta, filed an application seeking approval of the resolution plan submitted by Consortium of Yogayatan Ports Private Limited and Dr. Rajendra Raja Bali Singh. The CIRP was initiated following the admission of a petition filed by SBI on 05.04.2022. Several steps were taken, including public announcements, constitution of the Committee of Creditors (CoC), and invitation for Expression of Interest (EoI). The CoC approved the resolution plan with 100%

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## Facts

1. State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Dharti Dredging and Infrastructure Ltd under Section 7 of IBC, 2016.
2. CIRP was admitted on 05.04.2022.
3. Mr. Madhusudhan Rao Gonugunta was appointed as the Interim Resolution Professional (IRP) and later confirmed as Resolution Professional (RP).
4. Public announcement was made on 13.04.2022, inviting claims from creditors.
5. Committee of Creditors (CoC) was constituted, comprising State Bank of India (50.064% voting share), Federal Bank (15.485%), and ICICI Bank (34.451%).
6. RP invited Expression of Interest (EoI) for resolution plans, receiving nine EOIs, but only one was compliant (M/s.Megha Engineering and Infrastructure Limited), but no resolution plan was received from them.
7.

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## Issues and analysis

### Issue 1: Whether the communication of the Resolution Professional dated 24/02/2023 to the Applicant, whereby …

**Ratio:** A conditional Resolution Plan cannot be approved in the light of Section 31(1) of IB

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**Reasoning:** The Resolution Professional rejected the plan of Mr. A. Rajendra because it was

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**Interpretation:** Section 31(1) of the IBC requires a resolution plan to be unconditional.

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**Application:** The NCLT upheld the RP's decision, finding that the rejection was based on

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** Dharti Dredging…; Yogayatan Ports…

## Timeline

- **2020-01-01 — Company Petiti…**: CP(IB) No. 329/7/HDB/202…
- **2022-04-05 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against Dharti Dredging and…

## 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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