# 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-02641. Phoenix ARC Private Limited, a financial creditor, initiated a corporate insolvency resolution…

- **Court:** NCLT
- **Order date:** 24 May 2022
- **Citation:** TCN-2022-NCLT-02641
- **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-2018-57e27d02

## Summary

### Background

Phoenix ARC Private Limited, a financial creditor, initiated a corporate insolvency resolution process (CIRP) against GPI Textiles Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Tribunal admitted the petition on 06.07.2018 and appointed Mr. Jalesh Kumar Grover as the Interim Resolution Professional (IRP), who was later confirmed as the Resolution Professional by the Committee of Creditors (CoC). Aggarsain Spinners Limited submitted a resolution plan, which was approved by the CoC. M/s Shreeji Cotfab Ltd., 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

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## Facts

Phoenix ARC Private Limited initiated CIRP against GPI Textiles Limited. M/s Shreeji Cotfab Ltd., 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). Aggarsain Spinners Limited's name was prominently mentioned in a BSE notice dated 28.03.2018 regarding non-compliant ELCs. The applicant argued that Aggarsain Spinners Limited concealed this information. The Resolution Professional received an email from Ayat Processors stating Aggarsain Spinners was ineligible. Aggarsain Spinners

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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 applicant is not interfering on the merits as well as implementation of resolution

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**Reasoning:** The Tribunal stated that the applicant is not interfering on the merits as well as

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**Interpretation:** The applicant has locus standi to challenge the eligibility of the successful

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**Application:** The applicant has the right to challenge the eligibility of the successful

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Phoenix Arc…
- **Respondents:** GPI Textiles…; AGGARSAIN…

## Timeline

- **2018-07-06 — Tribunal Admits…**: Tribunal admitted the petition…
- **2018-07-12 — Appointment…**: Mr. Jalesh Kumar Grover was appointed as…

## 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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