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

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02026. 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-02026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/e-g-global-estate-ltd-9e37c4f1

## 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 reliefs related to the Corporate Insolvency Resolution Process (CIRP) of E & G Global Estates Limited. G. S. Constructions, along with others, are investors and shareholders of E & G Global Estates Limited, holding approximately 48% of the company's shares. They had infused funds into the company based on an MoU dated 10.12.2018, where they paid Rs.75 lakh to SIDBI towards part payment of a loan. SIDBI later 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 on

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## Facts

G. S. Constructions, along with others, are investors and shareholders of E & G Global Estates Limited, the Corporate Debtor, holding approximately 48% of the company's shares. An MoU dated 10.12.2018 was entered into between the parties, whereby G. S. Constro & Infra Pvt. Ltd. & Ors paid Rs.75 lakh to SIDBI, towards the part payment of the loan amount. 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 on 24.06.2020. G. S. Constructions' claim as a financial creditor was rejected by the Interim Resolution Professional (IRP). G. S. Constructions filed IA 1148 of 2020, which was dismissed on 03.12.2020. They then filed an

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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 court considered Section 25 (3A) of the Insolvency and Bankruptcy Code, which

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**Reasoning:** The court reasoned that the applicant failed to prove that the CoC was improperly

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**Interpretation:** The interpretation of Section 25 (3A) emphasizes the importance of the

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**Application:** The court applied this principle to the facts of the case, noting 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 Ente…**: An MoU was entered into between G. S. Constro & Infra Pvt. Ltd. & Ors and E & G Global…
- **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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