# In the matter of Gangotri Enterprises Limited

> NCLT judgment dated 2024-04-03. Citation: TCN-2024-NCLT-01864. The case involves an application filed by Akul Securities Private Limited under Section 60(5)…

- **Court:** NCLT
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-NCLT-01864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gangotri-enterprises-limited-7c8a5883

## Summary

### Background

The case involves an application filed by Akul Securities Private Limited under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to set aside the rejection of its resolution plan by the Resolution Professional (RP) of Gangotri Enterprise Limited. The applicant contends that the majority of the Committee of Creditors (CoC) had already voted in favor of its plan. The Corporate Insolvency Resolution Process (CIRP) was initiated against Gangotri Enterprises Limited by Bank of India under Section 7 of the IBC. The CoC rejected the resolution plan and approved the liquidation of the Corporate Debtor under IBBI regulations. The applicant sought multiple extensions and revisions to the resolution plan, increasing the fund-based consideration. Despite

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Gangotri Enterprises Limited by Bank of India. Akul Securities Private Limited submitted a resolution plan, which was initially rejected by the Resolution Professional (RP). The applicant revised the resolution plan multiple times, increasing the fund-based consideration from Rs.121 crores to Rs.140 crores. The CoC rejected the revised resolution plan, leading to an application for liquidation. The applicant requested the CoC to consider an amended Resolution Plan, emphasizing that liquidation would not be in the interest of any party. The applicant increased the consideration amount offered for the fund-based financial creditors from Rs 115 Cr to Rs 140 Cr along with return/replacement of

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## Issues and analysis

### Issue 1: Whether the CoC's decision to reject the resolution plan was justified, considering the applicant's …

**Ratio:** The commercial wisdom of the CoC is generally respected, but it must be exercised in

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**Reasoning:** The tribunal considered the applicant's efforts to revise the resolution plan and

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**Interpretation:** The tribunal interpreted the provisions of the IBC and relevant case laws to

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**Application:** The tribunal applied the ratio of the law to the facts of the case, considering

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Akul Securities…
- **Respondents:** M/S. GANGOTRI…

## Timeline

- **2021-12-06 — Tribunal…**: Tribunal admitted the application filed under section 7 of the IBC, 2016 by Financial…
- **2022-08-05 — 5th CoC M…**: Extension of another 60 days for CIRP Period as approved by the CoC in their 5th meeting…

## 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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