# In the matter of Ramnath Developers Private Limited

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-02001. The case involves applications (IA No. 543/2023 and IA No. 147/2021) filed in connection with a…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-02001
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ramnath-developers-private-limited-cdff9094

## Summary

### Background

The case involves applications (IA No. 543/2023 and IA No. 147/2021) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Ramnath Developers Private Limited. The CIRP was initiated following the admission of a Section 9 petition filed by an Operational Creditor. The Resolution Professional (RP) made public announcements inviting claims, and meetings of the Committee of Creditors (COC) were held. Two valuers were appointed to assess the assets and liquidation value of the Corporate Debtor. The COC passed a resolution for the publication of Form G to invite Expression of Interest from Prospective Resolution Applicants. Despite initial efforts, the received Expression of Interest did not fetch a suitable Resolution Plan. The RP

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Ramnath Developers Private Limited after a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) was admitted. An Interim Resolution Professional (IRP) was appointed, and public announcements were made to invite claims from creditors. The Committee of Creditors (COC) was formed, and meetings were held to discuss the resolution process. 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 decided to publish Form G to invite Expression of Interest (EOI) from Prospective Resolution Applicants (PRAs). Only one EOI was received initially, which the COC deemed insufficient to fetch a right value for a

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## Issues and analysis

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

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

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**Reasoning:** The COC has been making all out efforts to work out a Resolution Plan so as to rescue the

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**Interpretation:** The court interprets that the COC's decision to invite fresh Resolution Plans

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**Application:** The court applied the ratio by allowing the RP to issue fresh Form G, thereby

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Ganga Ram A…
- **Respondents:** Ramnath Developers…; Sudesh Chandra…

## Timeline

- **2020-01-23 — Admission of Section 9…**: A petition under Section 9 of the Insolvency and Bankruptcy Code was admitted, initiating…
- **2020-06-25 — 4th COC M…**: The COC held its 4th meeting and passed a resolution for the publication of Form G to…

## 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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