# In the matter of Goli Vada Pav Pvt. Ltd.

> NCLT judgment dated 2024-10-16. Citation: TCN-2024-NCLT-00424. The case involves an application filed by Lotus Beauty Care Products Pvt. Ltd. against the…

- **Court:** NCLT
- **Order date:** 16 Oct 2024
- **Citation:** TCN-2024-NCLT-00424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/goli-vada-pav-pvt-ltd-58a1a807

## Summary

### Background

The case involves an application filed by Lotus Beauty Care Products Pvt. Ltd. against the Interim Resolution Professional (IRP) of Goli Vada Pav Private Limited, Mr. Vinod Radhakrishnan Nair, and Goli Vada Pav Private Limited itself. The applicant sought to set aside orders passed by the IRP and to be included in the Committee of Creditors (CoC) of Goli Vada Pav Private Limited. The IRP rejected the applicant's inclusion in the CoC, deeming them a related party to the Corporate Debtor, Goli Vada Pav Private Limited, under Section 5(24) of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor was admitted into CIRP on 05.09.2023 following a petition by an Operational Creditor under Section 9 of the IBC.

## Facts

Lotus Beauty Care Products Pvt. Ltd. filed an application seeking to be included in the Committee of Creditors (CoC) of Goli Vada Pav Private Limited, a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated on 05.09.2023 following a petition by an Operational Creditor. The Interim Resolution Professional (IRP) rejected Lotus Beauty Care's inclusion, arguing that it is a related party under Section 5(24) of the Insolvency and Bankruptcy Code (IBC), 2016. Lotus Beauty Care had extended an inter-corporate deposit of INR 1,50,00,000 to Goli Vada Pav Pvt. Ltd. under an agreement dated 05.12.2020. The IRP admitted the principal claim but denied CoC membership. Lotus Beauty Care is a partner in Clarion Health Food LLP, which holds

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## Issues and analysis

### Issue 1: Whether Lotus Beauty Care Products Pvt. Ltd. is a 'related party' to Goli Vada Pav Private Limited …

**Ratio:** Section 5(24) of the IBC defines 'related party' in relation to a corporate debtor. This

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**Reasoning:** The NCLT reasoned that Lotus Beauty Care exercises significant influence and control over

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**Interpretation:** The term 'significant influence' is interpreted broadly to include not only

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**Application:** The NCLT applied the definition of 'related party' to the facts of the case and

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Lotus Beauty Care…
- **Respondents:** Goli Vada Pav…; Vinod Radhakrishna…

## Timeline

- **2020-12-05 — Inter-Corporate Deposit…**: Lotus Beauty Care Products Pvt. Ltd. provided an inter-corporate deposit of INR…
- **2023-09-05 — Admission in…**: Goli Vada Pav Private Limited was admitted into Corporate Insolvency Resolution Process…

## 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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