# In the matter of Manjeera Retail Holdings Private Limited

> NCLT judgment dated 2024-11-18. Citation: TCN-2024-NCLT-00213. The case involves an application (IA (IBC)/373/2024) filed by the suspended director of…

- **Court:** NCLT
- **Order date:** 18 Nov 2024
- **Citation:** TCN-2024-NCLT-00213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manjeera-retail-holdings-private-limited-5c665eed

## Summary

### Background

The case involves an application (IA (IBC)/373/2024) filed by the suspended director of Manjeera Retail Holdings Private Limited (MRHPL) seeking consolidation of the Corporate Insolvency Resolution Process (CIRP) of MRHPL with that of its holding company, Manjeera Constructions Limited (MCL). Both companies were admitted into CIRP on 2023-07-18. The application was filed more than 180 days after the CIRP commenced. The Resolution Professional (RP) and the Committees of Creditors (CoCs) for both Corporate Debtors opposed the consolidation. The applicant argued that both companies have common assets and liabilities and meet the criteria for consolidation as laid down in judicial precedents.

## Facts

The suspended director of Manjeera Retail Holdings Private Limited (MRHPL) filed an application seeking consolidation of the CIRP of MRHPL with its holding company, Manjeera Constructions Limited (MCL). Both companies were admitted into CIRP on 2023-07-18. The application was filed more than 180 days after the CIRP commenced. Both Corporate Debtors received 46 Expressions of Interest (EoIs) each, with 4 Prospective Resolution Applicants submitting resolution plans for MCL and 8 for MRHPL. The CoC for MRHPL consists of 2 members, while the CoC for MCL has 7 members. The RP and the CoCs for both Corporate Debtors opposed the consolidation, arguing that it was an attempt to delay the resolution process. The applicant argued that both companies have common assets and

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## Issues and analysis

### Issue 1: Whether the application for consolidation of the CIRP of Manjeera Retail Holdings Private Limited …

**Ratio:** The decision to consolidate or not rests with the CoCs, who are not only better equipped

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**Reasoning:** The court reasoned that the CoCs of both Corporate Debtors opposed the consolidation,

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**Interpretation:** The court interpreted the law to mean that the commercial wisdom of the CoCs is

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Gajjala Yo…
- **Respondents:** M/s. Manjeera…; M/s. Catalyst…

## Timeline

- **2023-07-18 — Admission in…**: Both Manjeera Retail Holdings Private Limited (MRHPL) and Manjeera Constructions Limited…
- **2024-02-12 — Application for…**: The suspended director of MRHPL filed an application seeking consolidation of the CIRP of…

## 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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