# In the matter of E & G Global Estate Ltd.

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02066. The Interlocutory Application IA 1387/MB-V/2022 was filed by G. S. Constructions, through its…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/e-g-global-estate-ltd-0d748243

## Summary

### Background

The Interlocutory Application IA 1387/MB-V/2022 was filed by G. S. Constructions, through its proprietor Mr. Sushil Uttarwar, under Section 60(5) of the IBC, 2016, seeking various reliefs, including quashing the existing Committee of Creditors (CoC) of E & G Global Estates Limited (Corporate Debtor), declaring the CoC's actions void, directing Respondent No. 1 to call for outstanding dues from home buyers, reconstituting the CoC, reconsidering resolution plans, directing negotiation and handover of unsold units, and rejecting the resolution plan submitted by Mrs. Asha Sanap. The applicant, G. S. Constructions, is an investor and shareholder of the corporate debtor, E & G Global Estates Limited, holding approximately 48% of the company's shares. They infused

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## Facts

G. S. Constructions, through its proprietor Mr. Sushil Uttarwar, filed IA 1387/MB-V/2022 seeking to quash the existing CoC of E & G Global Estates Limited (Corporate Debtor). G. S. Constructions is an investor and shareholder holding approximately 48% of the Corporate Debtor. They infused funds based on an MoU dated 10.12.2018, paying Rs.75 lakh to SIDBI. SIDBI filed a Company Petition No. 2995 of 2019 under Section 7 of the Code against the Corporate Debtor, claiming a default of Rs.3,85,15,033/-. The NCLT admitted the petition into CIRP. G. S. Constructions' claim as a financial creditor was rejected by the Interim Resolution Professional. The CoC was formed, comprising 52 home buyers and SIDBI. The applicant's resolution plan was rejected, and Mrs. Asha Sanap's

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (CoC) formed in this case is liable to be set aside and all acts …

**Ratio:** The NCLT has the power to review the constitution and decisions of the CoC, but only if

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**Reasoning:** The NCLT considered the applicant's claim that the CoC was improperly constituted due to

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**Interpretation:** The NCLT interpreted the relevant provisions of the IBC to mean that the CoC

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**Application:** The NCLT applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** G. S. Construction…
- **Respondents:** E & G Global…; Gajesh Labhchand…

## Timeline

- **2018-12-10 — MoU between G. S. Constro & Infra Pvt. Ltd. &…**: An MoU was entered into between the parties, whereby M/s. G. S. Constro & Infra Pvt. Ltd.…
- **2019-01-26 — Completion Cer…**: A completion Certificate dated 26.01.2019 has…

## 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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