# In the matter of Heera Constructions Private Limited {I.A. 2238-2022 in C.P. No. (IB) 4447-MB-2018]

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03968. IFCI Ltd., a dissenting financial creditor, filed I.A. 2238/2022 challenging the approval of a…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03968
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/heera-constructions-private-limited-ia-2238-2022-in-cp-no-ib-4447-mb-2018-2136fb86

## Summary

### Background

IFCI Ltd., a dissenting financial creditor, filed I.A. 2238/2022 challenging the approval of a resolution plan submitted by Royal Heights Projects Private Limited. The resolution plan was approved by the Committee of Creditors (CoC) with a majority of 79.43% voting share. IFCI Ltd. claimed that the resolution plan did not provide a holistic resolution for all the projects of the Corporate Debtor, Heera Constructions Private Limited, and was in contravention of a previous order by the Tribunal. They also argued that the plan did not provide for the liquidation value to dissenting creditors as per Section 30(2)(b) of the Insolvency and Bankruptcy Code (IBC).

## Facts

IFCI Ltd. filed I.A. 2238/2022 challenging the resolution plan approved by the CoC for Heera Constructions Private Limited. IFCI Ltd. is a dissenting financial creditor with 20.546% voting share. The resolution plan was approved on 22.06.2022 with a 74.19% majority. IFCI Ltd. had granted financial assistance of Rs. 50 Crore to the Corporate Debtor, secured by a mortgage on four properties. The properties include 5.46 acres of land at Attipra Village, 0.60 acres of land at Poonithura Village, 0.30 acres of land at Nedumangad Village, and 6 residential flats at HeeraWindfaire. IFCI Ltd. argued that the resolution plan did not provide a holistic resolution for all 17 projects of the Corporate Debtor and violated a previous Tribunal order dated 03.03.2022. They also

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The commercial wisdom of the CoC is paramount and the Adjudicating Authority has a

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**Reasoning:** The Tribunal relied on several judgments of the Hon'ble Supreme Court, which held that

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**Interpretation:** The interpretation of Section 30(2) of the IBC limits the scope of judicial

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**Application:** In this case, the Tribunal found that the CoC had discussed the feasibility and

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** IFCI…
- **Respondents:** Heera Construction…; Raju Palanilkunnat…
- **Advocates:** Shyam Ka…; Amir Ars…; +5 more

## Timeline

- **2018-01-01 — C.P. No. (IB)…**: The matter was initiated as…
- **2019-03-27 — Insolvency Proceedings…**: Heera Construction Company Limited (HCCL) has been facing insolvency proceedings since…

## 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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