# In the matter of Ramnath Developers Private Limited

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01992. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-01992
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ramnath-developers-private-limited-1caecd2e

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The Resolution Professional (RP) filed IA No.543/2023 seeking permission to issue fresh Form G to invite Prospective Resolution Applicants (PRAs) and keep the liquidation application (IA No.147/2021) in abeyance. The CIRP was initiated based on a petition filed under Section 9 of the IBC, which was admitted on January 23, 2020. The RP made public announcements, and the Committee of Creditors (COC) held meetings. Two valuers were appointed to assess the assets and liquidation value of the Corporate Debtor, which was estimated at Rs.11.27 Cr. The COC passed a resolution to publish Form G, and despite

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Ramnath Developers Private Limited based on a Section 9 petition, admitted on January 23, 2020. Mr. Ganga Ram Agarwal served as the Resolution Professional (RP). The Committee of Creditors (COC) was formed, and two valuers were appointed to assess the assets, estimating the liquidation value at Rs. 11.27 Cr. Form G was published to invite Expression of Interest (EOI) from Prospective Resolution Applicants (PRAs). Despite extensions, the resolution plan was disapproved by the COC with a 92.73% vote. The RP then discussed liquidation or revival options with the COC. The COC decided to liquidate the Corporate Debtor with an 83.97% vote. The RP filed IA No.147/2021 to initiate liquidation. The COC

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## Issues and analysis

### Issue 1: Whether the Resolution Professional should be permitted to issue fresh Form G to invite Prospective …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) should be regarded,

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**Reasoning:** The court considered the COC's decision to continue the CIRP process and invite fresh

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**Interpretation:** This issue involves interpreting the powers and duties of the COC and the

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**Application:** The ratio and reasoning apply to the specific facts of the case because the COC

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Ganga Ram A…
- **Respondents:** Ramnath Developers…; Sudesh Chandra…
- **Advocates:** Amar V…; Aditya…; +3 more

## Timeline

- **2020-01-23 — Admission of Section 9…**: Petition under Section 9 of the Insolvency and Bankruptcy Code was admitted, initiating…
- **2020-06-25 — 4th COC M…**: Resolution passed for publication of Form G for inviting Expression of Interest from…

## 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)

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