# In the matter of GPI Textiles Limited IA No.348 of 2021 & IA No.155-2022 in CP(IB) No. 35-Chd-HP-2018

> NCLT judgment dated 2022-05-24. Citation: TCN-2022-NCLT-02623. Phoenix ARC Private Limited, a financial creditor, initiated corporate insolvency resolution…

- **Court:** NCLT
- **Order date:** 24 May 2022
- **Citation:** TCN-2022-NCLT-02623
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gpi-textiles-limited-ia-no348-of-2021-ia-no155-2022-in-cpib-no-35-chd-hp-2018-3db681f7

## Summary

### Background

Phoenix ARC Private Limited, a financial creditor, initiated corporate insolvency resolution process (CIRP) against GPI Textiles Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 06.07.2018, and Mr. Jalesh Kumar Grover was appointed as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional. Aggarsain Spinners Limited submitted a resolution plan, which was approved by the Committee of Creditors (CoC). M/s Shreeji Cotfab Limited, an unsuccessful resolution applicant, filed IA No.348 of 2021 challenging the approval of Aggarsain Spinners Limited's resolution plan, alleging disqualification under Section 29A(f) of the Code, due to SEBI restrictions. Aggarsain Spinners

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## Facts

Phoenix ARC Private Limited initiated CIRP against GPI Textiles Limited. M/s Shreeji Cotfab Limited, an unsuccessful resolution applicant, challenged the resolution plan of Aggarsain Spinners Limited, alleging disqualification under Section 29A(f) of the IBC. Aggarsain Spinners Limited was allegedly debarred by SEBI from accessing the securities market due to non-compliance with SEBI circulars related to Exclusively Listed Companies (ELCs). The applicant argued that Aggarsain Spinners Limited concealed this fact and filed a false affidavit. The Resolution Professional received an email from Ayat Processors pointing out Aggarsain Spinners Limited's ineligibility. Aggarsain Spinners Limited contended that BSE's notice was merely a recommendation and not a prohibition by

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## Issues and analysis

### Issue 1: Whether the Unsuccessful Resolution Applicant is having any locus standi to file the application …

**Ratio:** An unsuccessful resolution applicant can challenge the eligibility of the successful

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**Reasoning:** The tribunal reasoned that the applicant is not interfering on the merits as well as

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**Interpretation:** This clarifies that an unsuccessful resolution applicant has the right to

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**Application:** The tribunal found that M/s Shreeji Cotfab Limited had the locus standi to

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Shreeji…
- **Respondents:** GPI Textiles…; AGGARSAIN…

## Timeline

- **2018-07-06 — Application A…**: Tribunal admitted the application…
- **2018-07-12 — Appointment…**: Mr. Jalesh Kumar Grover was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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