# In the matter of Galada Power and Telecommunication Ltd. I.A. No.663-2021 in CP(IB) No.384-7-HDB-2018

> NCLT judgment dated 2023-03-13. Citation: TCN-2023-NCLT-04264. The case involves an application filed by Jiva Internet Solutions Pvt. Ltd., the Resolution…

- **Court:** NCLT
- **Order date:** 13 Mar 2023
- **Citation:** TCN-2023-NCLT-04264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/galada-power-and-telecommunication-ltd-ia-no663-2021-in-cpib-no384-7-hdb-2018-6c235809

## Summary

### Background

The case involves an application filed by Jiva Internet Solutions Pvt. Ltd., the Resolution Applicant, under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016. The applicant sought directions to Respondents 1 to 5 to revoke their decision to approve the Resolution Plan submitted by Respondent 6, Amrutha Constructions Pvt. Ltd., and to accept the Resolution Plan submitted by the applicant. The Corporate Insolvency Resolution Process (CIRP) was initiated against Galada Power and Telecommunications Ltd. based on a petition filed by Stressed Assets Stabilization Fund. The Interim Resolution Professional (IRP) invited Expression of Interest (EOI), and Jiva Internet Solutions submitted its Financial Proposal and

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## Facts

The Stressed Assets Stabilization Fund initiated CIRP against Galada Power and Telecommunications Ltd. The Interim Resolution Professional (IRP) invited Expression of Interest (EOI). Jiva Internet Solutions submitted a Resolution Plan for Rs.39,87,26,575/-. The RP shortlisted three Resolution Applicants. The CoC selected Amrutha Constructions Pvt. Ltd. through e-voting, concluding on 2021-09-17. Jiva Internet Solutions alleged that the RP and CoC manipulated qualitative parameters and committed fraud. Jiva Internet Solutions claimed to have offered a higher amount to CoC members and workmen. The CoC's decision was based on the financial strength and in-house talent of Amrutha Constructions. The CoC considered the net worth, track record, and core competence of the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can direct the COC to revoke its acceptance accorded to a …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) in approving or rejecting a

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**Reasoning:** The NCLT relied on several judgments, including IMR Metallurgical Resources AG v. Ferro

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**Interpretation:** The interpretation of Section 31 of the IBC, as clarified by the cited

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**Application:** In this case, the NCLT found that the CoC's decision to approve Amrutha

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## Parties

- **Judges:** N.V.RAMAKRISHNA…; Satya Ranjan…
- **Appellants:** Jiva Internet…
- **Respondents:** Galada Power and…; Galada Power and…; +1 more

## Timeline

- **2018-01-01 — CP(IB) F…**: Company Petition CP(IB) No.384/7/HDB/2018 filed…
- **2019-08-14 — CIRP Admi…**: The Company Petition was admitted into…

## 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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