# In the matter of Overnite Express Limited

> NCLT judgment dated 2023-09-18. Citation: TCN-2023-NCLT-01561. The case involves a Company Petition (IB)-2240(ND)/2019 filed by M/s Hi-Tech Resource…

- **Court:** NCLT
- **Order date:** 18 Sept 2023
- **Citation:** TCN-2023-NCLT-01561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/overnite-express-limited-31dd94ac

## Summary

### Background

The case involves a Company Petition (IB)-2240(ND)/2019 filed by M/s Hi-Tech Resource Management Limited against M/s Overnite Express Limited, the Corporate Debtor, under Section 7 of the IBC, 2016. The petition was admitted on 02.03.2020, initiating the Corporate Insolvency Resolution Process (CIRP). Deutsche Bank A.G., a secured financial creditor, filed IA No. 3846 of 2023 objecting to the Resolution Plan submitted by the Resolution Professional (RP), Mr. Devendra Umrao, in IA-1175/ND/2022. The objection was based on the grounds that the Corporate Debtor fraudulently obtained an MSME certificate post-CIRP commencement to take advantage of Section 240A of the IBC, and that the amount offered in the Resolution Plan was meager compared to the security held by the bank.

## Facts

M/s Hi-Tech Resource Management Limited filed a Company Petition (IB)-2240(ND)/2019 against M/s Overnite Express Limited, the Corporate Debtor, under Section 7 of the IBC, 2016. The petition was admitted on 02.03.2020, initiating CIRP. Deutsche Bank A.G., a secured financial creditor, objected to the Resolution Plan submitted by the RP, Mr. Devendra Umrao. The total admitted claims of the Secured Financial Creditors were Rs.10,82,08,485/-, with an offer of Rs.3,24,62,545/-, approximately 30% of the admitted claims. Deutsche Bank's claim was Rs.6,00,26,716.30/-, also offered a mere 30%. The Corporate Debtor claimed to fall under the MSME category, based on a certificate obtained on 12.11.2021, after the CIRP commencement on 02.03.2020. The RP relied on a judgment of the

…

## Issues and analysis

### Issue 1: Whether the MSME Certificate obtained after the commencement of CIRP is valid for making a …

**Ratio:** An MSME Certificate obtained by Promoter(s)/Ex-Director(s) post-commencement of the CIRP

…

**Reasoning:** The court reasoned that allowing a defaulting promoter to submit a resolution plan based

…

**Interpretation:** The court interpreted Section 240A of the IBC, which provides certain benefits

…

**Application:** The court applied the ratio to the facts of the case, noting that the MSME

…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Deutsche Ba…
- **Respondents:** M/s Overnite…
- **Advocates:** Rahul T…; Sumant…; +2 more

## Timeline

- **2020-03-02 — CIRP Init…**: Order passed by the Hon'ble NCLT for…
- **2020-03-08 — Public Annou…**: Public Announcement…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/overnite-express-limited-31dd94ac