# In the matter of Dharti Dredging and Infrastructure Limited

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-02414. The case involves an application (IA.No.407 of 2023) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-02414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dharti-dredging-and-infrastructure-limited-7c3ac9dd

## Summary

### Background

The case involves an application (IA.No.407 of 2023) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Dharti Dredging and Infrastructure Limited (CP (IB) NO. 329/7/HDB/2020). The applicant, Mr. A. Rajendra, a shareholder and suspended managing director of the corporate debtor, sought a direction for the respondent (Resolution Professional) to place his resolution plan before the Committee of Creditors (CoC) for consideration and to stay the voting results of another resolution plan. The Resolution Professional rejected Mr. Rajendra's plan, citing non-compliance with Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016. The applicant appealed this rejection, which led to the current proceedings.

## Facts

1. Corporate Insolvency Resolution Process (CIRP) was initiated against Dharti Dredging and Infrastructure Limited on 2022-04-05.
2. Mr. A. Rajendra, a shareholder and suspended managing director, submitted a resolution plan on 2023-01-13.
3. The Resolution Professional (RP) rejected the plan, citing violations of the IBC.
4. The applicant appealed the rejection to the Adjudicating Authority, which condoned the delay in submission and directed the RP to re-examine the plan.
5. The RP again rejected the plan on 2023-02-24, stating non-compliance with Section 29A of the IBC.
6. The RP received multiple Expressions of Interest (EOIs) and informed the CoC.
7. The CoC approved a resolution plan submitted by Yogayatan Ports Private Limited and Dr. Rajendra Raja Bali Singh with

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## Issues and analysis

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

**Ratio:** A conditional Resolution Plan cannot be approved under Section 31(1) of the IB Code. The

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**Reasoning:** The Tribunal reasoned that the applicant's resolution plan was conditional because it

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**Interpretation:** The interpretation of Section 31(1) of the IB Code is that a resolution plan

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**Application:** The Tribunal applied the ratio to the facts of the case by finding that the

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## Parties

- **Judges:** Venkata Ramakrishn…; Shri. Chara…
- **Appellants:** A. Raje…
- **Respondents:** Dharti Dredging…; G. Madhusud…

## Timeline

- **2022-04-05 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Dharti Dredging and…
- **2023-01-13 — Submission of…**: Mr. A. Rajendra…

## 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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