# In the matter of Rajahmundry Godavari Bridge Limited I.A. NO. 1148 OF 2022 in C.P.-IB-2677-MB-2018

> NCLT judgment dated 2022-08-10. Citation: TCN-2022-NCLT-01396. The case involves an Interlocutory Application filed by AJR Infra and Tolling Limited against…

- **Court:** NCLT
- **Order date:** 10 Aug 2022
- **Citation:** TCN-2022-NCLT-01396
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rajahmundry-godavari-bridge-limited-ia-no-1148-of-2022-in-cp-ib-2677-mb-2018-d22faa00

## Summary

### Background

The case involves an Interlocutory Application filed by AJR Infra and Tolling Limited against the Committee of Creditors (CoC) and the Resolution Professional (RP) of Rajahmundry Godavari Bridge Limited. AJR Infra sought orders directing the CoC to consider its settlement proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC) and to stay consideration of other resolution plans until its proposal was considered. The applicant had submitted multiple settlement proposals, which were rejected by the CoC. The CoC found the proposals conditional and lacking confidence in the applicant's ability to honor commitments. The CoC also noted that the applicant's proposals were submitted at a belated stage, close to the end of the Corporate Insolvency Resolution

…

## Facts

AJR Infra and Tolling Limited (Applicant) filed an Interlocutory Application seeking to compel the Committee of Creditors (CoC) of Rajahmundry Godavari Bridge Limited (Corporate Debtor) to consider its settlement proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC). The Applicant submitted a revised proposal on 24.02.2022, offering to pay INR 435 Crores and depositing INR 10 Crores as bonafide. The Applicant's initial settlement proposal was dated 10.01.2022. The CoC rejected the Applicant's proposals in multiple meetings, including Joint Lenders Meetings (JLMs). The CoC cited concerns about the conditionality of the proposals, lack of clarity on funding sources, and the Applicant's failure to deposit INR 50 Crores in a non-lien account as directed.

…

## Issues and analysis

### Issue 1: Whether the Tribunal has the power to direct the Committee of Creditors (CoC) to consider a …

**Ratio:** The adjudicating authority has no power to give any directions to the COC to consider the

…

**Reasoning:** The Tribunal reasoned that the decision to consider and approve a settlement proposal

…

**Interpretation:** This interpretation emphasizes the autonomy of the CoC in making decisions

…

**Application:** In this case, the Tribunal applied the principle by refusing to direct the CoC

…

## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** AJR Infra and…
- **Respondents:** Rajahmundry…; Committee of…

## Timeline

- **2018-04-10 — Company Petiti…**: The Company Petition…
- **2020-02-27 — CIRP Order…**: The CIRP order was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

---

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/rajahmundry-godavari-bridge-limited-ia-no-1148-of-2022-in-cp-ib-2677-mb-2018-d22faa00