# In the matter of R S I Private Limited

> NCLT judgment dated 2024-12-03. Citation: TCN-2024-NCLT-00109. The case involves an application (I.A. (IB) No. 2250/KB/2024) filed in Company Petition (IB)…

- **Court:** NCLT
- **Order date:** 3 Dec 2024
- **Citation:** TCN-2024-NCLT-00109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/r-s-i-private-limited-607d4382

## Summary

### Background

The case involves an application (I.A. (IB) No. 2250/KB/2024) filed in Company Petition (IB) No. 730/KB/2019 before the National Company Law Tribunal (NCLT), Kolkata. The applicant, an MSME promoter of the corporate debtor, RSI Private Limited (In CIRP), sought relaxation or exemption from the net worth criteria for submitting a resolution plan in the Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) had excluded the applicant from the list of Prospective Resolution Applicants (PRAs) because the applicant did not meet the net worth criteria approved by the Committee of Creditors (CoC). The applicant challenged this decision, arguing eligibility under Section 240A read with Section 29A of the Insolvency and Bankruptcy Code (I&B Code).

## Facts

RSI Private Limited is undergoing CIRP. Goverdhan Das Bhaiya, an MSME promoter of RSI Private Limited, filed an application seeking relaxation from the net worth criteria to submit a resolution plan. The CIRP commenced on 2024-04-24, and Form G was issued on 2024-10-04. The RP excluded the applicant from the list of PRAs because the applicant did not meet the net worth criteria approved by the CoC in its 2nd CoC meeting on 2024-08-14. The applicant challenged the RP's decision, arguing eligibility under Section 240A read with Section 29A of the I&B Code. The applicant had submitted his Eol with all requisite documents and refundable process participation fees within the due dates. The RP raised queries, which the applicant replied to. The applicant issued an email

…

## Issues and analysis

### Issue 1: Whether the MSME promoter is entitled to relaxation and/or exemption and/or dispensation of the net …

**Ratio:** The rationale for exempting MSMEs from certain provisions is to encourage their

…

**Reasoning:** The NCLT considered the objectives of the I&B Code, the ILC Report, and judicial

…

**Interpretation:** The I&B Code aims to maximize the value of assets of the corporate debtor

…

**Application:** In this specific case, the NCLT allowed the relaxation and dispensation with

…

## Parties

- **Judges:** BIDISHA BA…; SHRI. D.…; +1 more
- **Appellants:** Goverdhan Das…
- **Respondents:** RSI Private…; Pratap Mukherjee,…

## Timeline

- **2023-04-06 — MSME Classif…**: The corporate applicant was classified as an MSME concern registered under MSMED Act,…
- **2024-04-24 — CIRP Commen…**: The CIRP commenced in respect…

## 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/r-s-i-private-limited-607d4382