# UV Asset Reconstruction Company Ltd. & Anr. vs. Aircel Ltd.

> NCLT judgment dated 2023-12-21. Citation: TCN-2023-NCLT-00088. The case involves an application (IA No. 1403/2022) filed in an ongoing corporate insolvency…

- **Court:** NCLT
- **Order date:** 21 Dec 2023
- **Citation:** TCN-2023-NCLT-00088
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/uv-asset-reconstruction-company-ltd-anr-vs-aircel-ltd-2c0492c4

## Summary

### Background

The case involves an application (IA No. 1403/2022) filed in an ongoing corporate insolvency resolution process (CIRP) of Aircel Limited (C.P. (IB) No. 298/MB/2018) before the National Company Law Tribunal (NCLT), Mumbai Bench. UV Asset Reconstruction Company Limited (Applicant No. 1), the successful resolution applicant, along with UV Stressed Assets Management Private Limited (Applicant No. 2), sought approval from the NCLT to substitute Applicant No. 2 in place of Applicant No. 1 for implementing the approved resolution plan. The resolution plan, approved earlier, faced hurdles due to the Reserve Bank of India's (RBI) refusal to grant necessary approvals to Applicant No. 1, an asset reconstruction company, citing regulatory restrictions. The approved resolution

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## Facts

- On 28.02.2018, Aircel Limited, Dishnet Wireless Limited, and Aircel Cellular Limited, facing financial difficulties, filed separate applications under Section 10 of the Insolvency and Bankruptcy Code (IBC). The petition concerning Aircel Limited was admitted on 12.03.2018, while the petitions for Dishnet Wireless Limited and Aircel Cellular Limited were admitted on 19.03.2018.

- Vijay Kumar Iyer served as the common Resolution Professional. UV Asset Reconstruction Company Limited (Applicant No. 1) submitted resolution plans for each entity. On 13.05.2019, the Committee of Creditors (CoC) approved Applicant No. 1's resolution plan for Aircel Limited with a 73.88% majority.

- The Adjudicating Authority approved the resolution plans on 09.06.2020.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the substitution of a successful Resolution Applicant …

**Ratio:** The Supreme Court has established that once a resolution plan is approved by the

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**Reasoning:** The NCLT reasoned that allowing the substitution of the resolution applicant would

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**Interpretation:** The IBC's framework aims to provide a structured and transparent process for

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**Application:** In this case, allowing Applicant No. 2 to substitute Applicant No. 1 would

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** UV Asset Reconstru…
- **Respondents:** Aircel Li…
- **Other parties:** Modification in…; RBI…; +1 more

## Timeline

- **2018-02-28 — Filing of Insolvency…**: Aircel Limited, Dishnet Wireless Limited, and Aircel Cellular Limited filed separate…
- **2018-03-12 — Admission of Aircel…**: The Tribunal admitted 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)

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