# In the matter of Mantena Laboratories Limited

> NCLT judgment dated 2024-02-06. Citation: TCN-2024-NCLT-02758. Bank of Maharashtra filed an application against the Resolution Professional (RP) of Mantena…

- **Court:** NCLT
- **Order date:** 6 Feb 2024
- **Citation:** TCN-2024-NCLT-02758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mantena-laboratories-limited-c826a152

## Summary

### Background

Bank of Maharashtra filed an application against the Resolution Professional (RP) of Mantena Laboratories Limited, being aggrieved by the 10th Committee of Creditors (CoC) meeting held on 24.03.2022, where the bank did not receive the distribution pattern of amounts as per the Resolution Plan. The Corporate Debtor (CD) was admitted into Corporate Insolvency Resolution Process (CIRP) on 06.08.2021, and the RP was appointed. The bank claimed ownership of 12.54% of the total voting share among admitted financial creditors and was aggrieved by the lack of information regarding the distribution pattern. The bank also raised concerns about the eligibility of Prospective Resolution Applicants (PRAs).

## Facts

The Bank of Maharashtra, a financial creditor, filed an application against the Resolution Professional (RP) of Mantena Laboratories Limited, the Corporate Debtor (CD). The CD was admitted into CIRP on 06.08.2021. The bank was aggrieved by the 10th CoC meeting held on 24.03.2022, where it did not receive the distribution pattern of amounts as per the Resolution Plan. The bank claimed a 12.54% voting share and alleged a lack of information regarding the distribution pattern. The bank also raised concerns about the eligibility of Prospective Resolution Applicants (PRAs), specifically Mr. Shiv Charan, who was allegedly involved in fraud cases. The bank argued that the distribution should adhere to Section 30(4) r/w 53(1) of the IBC, ensuring equal treatment of similarly

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## Issues and analysis

### Issue 1: Whether the Applicant is entitled to the same percentage of the distribution proceeds of the …

**Ratio:** The distribution of resolution proceeds is essentially the commercial wisdom of the

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**Reasoning:** The court reasoned that the Applicant's inclusion in the CoC was based on its status as a

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**Interpretation:** The interpretation of Section 30(4) of the IBC, as amended in 2019, suggests

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**Application:** In this case, the Applicant held a first charge only over the current assets,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/S ΜΑΝΤΕΝΑ…; Kambhammettu Sri…

## Timeline

- **2021-08-06 — Admission in…**: Corporate Debtor admitted into Corporate…
- **2021-08-21 — Proof of Clai…**: Applicant filed proof of claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(4) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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