The case involves an application (IA No. 805/2023) filed in connection with a company petition (CP(IB) No. 10/7/HDB/2023) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The applicants, erstwhile promoters of Feno Plast Ltd (the corporate debtor), challenged the decision of the Resolution Professional (RP) to reject their Expression of Interest (EOI) for submitting a resolution plan. The RP rejected the EOI because the applicants did not meet the minimum tangible net worth criteria of Rs. 75 Crores as stipulated in the Request for Resolution Plan (RFRP). The applicants argued that as promoters of an MSME (Micro, Small & Medium Enterprise), they should be exempt from this eligibility criterion under Section 240A of the IBC.
The key facts are as follows:
1. Feno Plast Ltd is undergoing Corporate Insolvency Resolution Process (CIRP) under the IBC.
2. Canara Bank initiated the CIRP by filing a petition under Section 7 of the IBC.
3. Mr. Haridas Krishna Kumar and Mrs. Saparna Haridas, erstwhile promoters of Feno Plast Ltd, submitted an Expression of Interest (EOI) to propose a resolution plan.
4. The Resolution Professional (RP) rejected their EOI because they did not meet the minimum tangible net worth criteria of Rs. 75 Crores as stipulated in the Request for Resolution Plan (RFRP).
5. The applicants argued that as promoters of an MSME, they should be exempt from this eligibility criterion under Section 240A of the IBC.
6. The Committee of Creditors (CoC) decided that the net worth criteria
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The Respondent was…
The Tribunal set aside…
The case involves an application (IA No. 805/2023) filed in connection with a company petition (CP(IB) No. 10/7/HDB/2023) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The applicants, erstwhile promoters of Feno Plast Ltd (the corporate debtor), challenged the decision of the Resolution Professional (RP) to reject their Expression of Interest (EOI) for submitting a resolution plan. The RP rejected the EOI because the applicants did not meet the minimum tangible net worth criteria of Rs. 75 Crores as stipulated in the Request for Resolution Plan (RFRP). The applicants argued that as promoters of an MSME (Micro, Small & Medium Enterprise), they should be exempt from this eligibility criterion under Section 240A of the IBC.
The key facts are as follows:
1. Feno Plast Ltd is undergoing Corporate Insolvency Resolution Process (CIRP) under the IBC.
2. Canara Bank initiated the CIRP by filing a petition under Section 7 of the IBC.
3. Mr. Haridas Krishna Kumar and Mrs. Saparna Haridas, erstwhile promoters of Feno Plast Ltd, submitted an Expression of Interest (EOI) to propose a resolution plan.
4. The Resolution Professional (RP) rejected their EOI because they did not meet the minimum tangible net worth criteria of Rs. 75 Crores as stipulated in the Request for Resolution Plan (RFRP).
5. The applicants argued that as promoters of an MSME, they should be exempt from this eligibility criterion under Section 240A of the IBC.
6. The Committee of Creditors (CoC) decided that the net worth criteria
The Respondent was…
The Tribunal set aside…