# In the matter of M B Malls Private Limited IA-1301-2023 in IB-607-PB-2020

> NCLT judgment dated 2023-06-06. Citation: TCN-2023-NCLT-03072. The case pertains to IA/1301/2023 filed in the Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 6 Jun 2023
- **Citation:** TCN-2023-NCLT-03072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-b-malls-private-limited-ia-1301-2023-in-ib-607-pb-2020-132147bd

## Summary

### Background

The case pertains to IA/1301/2023 filed in the Corporate Insolvency Resolution Process (CIRP) of MB Malls Private Limited. The applicant, Namo E-waste Management Limited & Vardhman Sales Agency, sought condonation of delay in submitting the fixed deposit receipt as security towards the bank guarantee and direction to the Resolution Professional to consider their resolution plan. The Resolution Professional (RP) argued that the applicant's resolution plan was non-responsive due to the non-submission of the bid bond, a mandatory requirement as per the Request for Resolution Plan (RFRP).

## Facts

The Corporate Insolvency Resolution Process (CIRP) of MB Malls Private Limited was initiated on 2022-08-03. Namo E-waste Management Limited & Vardhman Sales Agency, as prospective resolution applicants, submitted a resolution plan. The last date for submission was 2023-01-31. The applicant failed to submit the required bank guarantee along with the resolution plan initially, but later provided a fixed deposit receipt. The 17th CoC meeting on 2023-02-14 rejected the plan because it was not submitted on time as per the RFRP. The Resolution Professional (RP) received seven resolution plans, including the applicant's, which was deemed 'nonresponsive' because it lacked the bid bond as per provision 3.7.1 (iv) of the RFRP. All other six resolution applicants provided the

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## Issues and analysis

### Issue 1: Whether the delay in submitting the fixed deposit receipt as security towards the bank guarantee …

**Ratio:** Clause 3.7.1 of the RFRP clearly states that if a Resolution Plan is submitted without

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**Reasoning:** The court reasoned that the submission of a bid bond was a pre-requisite for the Plan

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**Interpretation:** The RFRP's clause regarding the bid bond is interpreted as a mandatory

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**Application:** The applicant's failure to submit the bid bond as per the RFRP justified the

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## Parties

- **Judges:** SHRI. BACHU…; SHRI. RAHUL…
- **Appellants:** NAMO E-WASTE…
- **Respondents:** MB MALLS PRIVATE…; Abhimanyu…

## Timeline

- **2022-08-03 — CIRP Init…**: CIRP of MB Malls…
- **2022-10-18 — Expression of Interest…**: Expression of interest…

## 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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