# In the matter of Prabhat Telecoms (India) Ltd.

> NCLT judgment dated 2024-01-09. Citation: TCN-2024-NCLT-03239. The case involves a resolution plan submitted for approval in IA 68/2021. The State Bank of…

- **Court:** NCLT
- **Order date:** 9 Jan 2024
- **Citation:** TCN-2024-NCLT-03239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prabhat-telecoms-india-ltd-5a090a2a

## Summary

### Background

The case involves a resolution plan submitted for approval in IA 68/2021. The State Bank of India (SBI) expressed concerns about fraudulent conduct by the promoters. SBI, representing 37.87% of the CoC voting share, decided to withdraw its approval for the resolution plan. The other financial creditors also decided to withdraw their approval. The plan was initially approved by 98% of the CoC members, but after SBI's withdrawal, the vote share fell below the required 66%.

## Facts

The resolution plan for the Corporate Debtor was initially approved by 98% of the Committee of Creditors (CoC). State Bank of India (SBI), holding 37.87% of the voting share, raised concerns regarding fraudulent conduct by the promoters. Consequently, SBI withdrew its approval for the resolution plan in IA 68/2021. Other financial creditors followed suit, withdrawing their consent as well. This withdrawal caused the voting share in favor of the plan to fall below the statutory requirement of 66% as mandated by Section 30(4) of the Insolvency and Bankruptcy Code (IBC). The SBI proposed Mr. Shailesh Desai as the liquidator. The relevance of SBI's withdrawal lies in its significant voting share, which directly impacted the plan's eligibility for approval under the IBC.

## Issues and analysis

### Issue 1: Whether the resolution plan can be approved when the voting share in its favor falls below the …

**Ratio:** A resolution plan must meet the statutory requirements outlined in Section 30(4) of the

…

**Reasoning:** The court reasoned that the initial approval by 98% of the CoC was rendered insufficient

…

**Interpretation:** Section 30(4) of the IBC is interpreted strictly to mean that a resolution plan

…

**Application:** In this case, SBI's withdrawal caused the voting share to fall below 66%.

…

## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Appellants:** PARAMOUNT…
- **Respondents:** Prabhat Technologi…
- **Advocates:** Rohit G…; Shivani…; +1 more

## Timeline

- **2023-12-18 — SBI Affi…**: State Bank of India placed an affidavit informing about concerns regarding fraudulent…
- **2023-12-19 — Previous Ord…**: Reference to the last order date where the…

## 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)

---

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/prabhat-telecoms-india-ltd-5a090a2a