# In the matter of Galada Power and Telecommunications Ltd.

> NCLT judgment dated 2023-03-13. Citation: TCN-2023-NCLT-04271. This case involves an application filed by Jiva Internet Solutions Pvt. Ltd. (the Applicant)…

- **Court:** NCLT
- **Order date:** 13 Mar 2023
- **Citation:** TCN-2023-NCLT-04271
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/galada-power-and-telecommunications-ltd-ee748bee

## Summary

### Background

This case involves an application filed by Jiva Internet Solutions Pvt. Ltd. (the Applicant) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions to the Committee of Creditors (CoC) to revoke their decision to approve the resolution plan submitted by Amrutha Constructions Pvt. Ltd. (Respondent No. 6) and to accept the resolution plan submitted by the Applicant. The Corporate Insolvency Resolution Process (CIRP) was initiated against Galada Power and Telecommunication Ltd. based on a petition filed by Stressed Assets Stabilization Fund. The Applicant contends that their resolution plan offered a higher amount to CoC members and workmen but was unfairly rejected in favor of Respondent No. 6.

## Facts

The Stressed Assets Stabilization Fund initiated CIRP against Galada Power and Telecommunication Ltd. The Interim Resolution Professional (IRP) invited Expression of Interest (EOI) from prospective resolution applicants. Jiva Internet Solutions Pvt. Ltd. submitted a resolution plan for Rs. 39,87,26,575. The Resolution Professional (RP) shortlisted three resolution applicants. The Committee of Creditors (CoC) selected Amrutha Constructions Pvt. Ltd.'s resolution plan through e-voting. Jiva Internet Solutions Pvt. Ltd. protested, claiming their plan offered a higher amount. The RP stated the CoC's decision was based on an evaluation matrix. Jiva Internet Solutions Pvt. Ltd. filed an application under Section 60(5) of the IBC, challenging the CoC's decision. The CoC

…

## 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

…

**Reasoning:** The court relied on precedents from the NCLAT and the Supreme Court, including IMR

…

**Interpretation:** The IBC grants significant autonomy to the CoC in the resolution process,

…

**Application:** In this case, the court found that the evaluation matrix used by the CoC was in

…

## Parties

- **Judges:** N.V.RAMAKRISHNA…; Satya Ranjan…
- **Appellants:** Jiva Internet…
- **Respondents:** Galada Power and…; Nitin Pa…

## Timeline

- **2018-01-01 — CP(IB) No.384/7/HDB/2018…**: The Company Petition CP(IB) No.384/7/HDB/2018 was filed by the Stressed Assets…
- **2019-08-14 — CIRP Admi…**: The Company Petition was admitted into CIRP by the Adjudicating Authority, and Mr. Nitin…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/galada-power-and-telecommunications-ltd-ee748bee