The case involves an application (IA-4989/2023) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, by the suspended Director of the Corporate Debtor, who is also a Prospective Resolution Applicant (PRA). The applicant seeks relief, arguing that the company is an MSME unit and should not be required to comply with the condition of submitting an Earnest Money Deposit (EMD) for submitting a Resolution Plan. The Committee of Creditors (CoC) declined to consider the applicant's request to waive the EMD/BG.
The Corporate Debtor is an MSME unit. The applicant is the promoter and suspended board director. The CIRP commenced on 2023-06-06. The Resolution Professional (RP) has called for Resolution Plans from PRAs with EMD/Bank Guarantee of Rs. 50,00,000. The applicant requested the RP and CoC to waive the EMD/BG. The CoC declined the request. The applicant filed IA-4989/2023 seeking relief from the EMD requirement, citing that the company is an MSME. The applicant relied on the NCLT Amaravati Bench's decision in the case of “M/s. Blue Park Seafoods Private Limited" between Mr. Hemanth Naga Mumar Nerella (Applicant) and Mr. Rajesh Chillale & State Bank of India (Respondents)” (26.07.2023).
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Corporate Insolvency…
Order sheet…
The case involves an application (IA-4989/2023) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, by the suspended Director of the Corporate Debtor, who is also a Prospective Resolution Applicant (PRA). The applicant seeks relief, arguing that the company is an MSME unit and should not be required to comply with the condition of submitting an Earnest Money Deposit (EMD) for submitting a Resolution Plan. The Committee of Creditors (CoC) declined to consider the applicant's request to waive the EMD/BG.
The Corporate Debtor is an MSME unit. The applicant is the promoter and suspended board director. The CIRP commenced on 2023-06-06. The Resolution Professional (RP) has called for Resolution Plans from PRAs with EMD/Bank Guarantee of Rs. 50,00,000. The applicant requested the RP and CoC to waive the EMD/BG. The CoC declined the request. The applicant filed IA-4989/2023 seeking relief from the EMD requirement, citing that the company is an MSME. The applicant relied on the NCLT Amaravati Bench's decision in the case of “M/s. Blue Park Seafoods Private Limited" between Mr. Hemanth Naga Mumar Nerella (Applicant) and Mr. Rajesh Chillale & State Bank of India (Respondents)” (26.07.2023).
Corporate Insolvency…
Order sheet…