# In the matter of General Composite Private Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02193. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against General…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/general-composite-private-limited-5e36c61d

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against General Composite Private Limited. The CIRP commenced on 03 September 2019. A resolution plan was approved by the NCLT on 11 August 2023. A monitoring committee (MC) was constituted to supervise the implementation of the resolution plan. The Successful Resolution Applicant (SRA), Mr. Pushkar Gulati, failed to make the upfront payment as per the approved resolution plan, leading to contravention of the plan. IA 108/2024 was filed seeking directions against the SRA for failing to perform its payment obligations. IA 5640/2023 was filed by the SRA seeking an extension of time to make the first installment payment.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of General Composite Private Limited commenced on 03 September 2019. A resolution plan was approved on 11 August 2023. Mr. Pushkar Gulati, the Successful Resolution Applicant (SRA), was required to make certain payments to creditors as per the approved resolution plan. The SRA failed to make the upfront payment of Rs. 1,32,93,465/- which was due by 9 October 2023. The SRA requested an extension of time to make the payment, citing liquidity issues and difficulties in securing funding. The Monitoring Committee (MC) discussed the issue in its meetings and noted that the SRA had not provided any concrete evidence of funding arrangements. The SRA had approached financial institutions and stressed asset funds to take over

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## Issues and analysis

### Issue 1: Whether the Successful Resolution Applicant (SRA) has contravened the approved resolution plan by …

**Ratio:** The ratio is that the SRA is obligated to adhere to the terms of the approved resolution

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**Reasoning:** The NCLT reasoned that the SRA had failed to make the upfront payment and had not

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**Interpretation:** The interpretation is that the approved resolution plan is binding on the SRA,

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**Application:** In this case, the SRA failed to make the upfront payment and did not provide

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Ankur K…
- **Respondents:** General Composite…; Pushkar G…

## Timeline

- **2019-09-03 — CIRP Commen…**: CIRP of Corporate Debtor commenced…
- **2021-07-23 — COC Meet…**: In the 13th COC meeting convened on 23 July 2021, the COC decided to reject the…

## 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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