Promoter Financials Count for SRA Eligibility | NCLAT

Case Details: Abhijit Realtors & Infraventures (P.) Ltd. v. Rohit Mehra - [2025] 174 taxmann.com 759 (NCLAT-New Delhi)

Judiciary and Counsel Details

• Ashok Bhushan, Chairperson & Barun Mitra, Technical Member
• Krishnendu Dutta, Abhijeet Sinha, Sr. Advs., Kunal Kanungo, Anuj Tiwari, Pulkit Sharma, Ms Tanushree Sogani, Ms Niharika Sharma, Atishay Jain, Ms Henna Kochhar, Ms Aroshi Pal, Nishant Chotani, Ms Bandita, Rakesh Kumar, Ankit Sharma, Ms Mansi Sharma, Ms Shreya Arneja, Prabhat Kumar, Advs. & Gaurav Mitra, Sr. Adv. for the Appellant.
• Neeraj Kishan Kaul, Sudhir K. Makkar, Ardhendmauli Kumar Prasad, Anupam Lal Das, Ramji Srinivasan, Sr. Advs., Ms Pooja Mahajan, Ms Mahima Singh, Ms Shreya Mahalwan, Raghav Agarwal, Saurabh Bacchawat, Divij Kumar, Varun Tandon, Shivang Mukherjee, S.P. Singh Chawla, Sinha Shrey Nikhilesh, S. Shishir, Parth Davar, Rohit H. Nair, Ms Sarakshi Asarsa, Swastik Verma & Ms Shivali Singh, Advs. for the Respondent.

Facts of the Case

In the instant case, CIRP was initiated against the corporate debtor. RP issued an Invitation for Expression of Interest (IEOI) inviting resolution plans. The appellant consortium of two companies participated in the bidding process. SRA was the highest bidder.

The appellant filed an application before the Adjudicating Authority praying for setting aside the decision of the CoC approving the resolution plan of SRA on the ground that SRA was incorporated only on 21-10-2022 and it did not fulfil the eligibility criteria of either turnover or net worth as per the inviting Expression of Interest (EOI).

The appellant further submitted that RP committed an error in adding the promoter’s net worth and turnover to determine SRA’s eligibility. The Adjudicating Authority, by impugned order, approved the resolution plan submitted by SRA.

It was noted that since no objection was raised to the inclusion of Resolution Applicants in the provisional list and final list, Resolution Applicants were to be treated as eligible to participate in the process, and no objection could be taken regarding eligibility. Further, the inclusion of the promoter’s net worth and turnover while examining the eligibility of SRA could not be said to be contrary to the Invitation for Expression of Interest.

NCLAT Held

The NCLAT held that since Resolution Professional had verified SRA’s eligibility and pleaded that SRA fulfilled both net worth and turnover criteria, SRA was fully eligible to submit a Resolution Plan. Further, Resolution Professional and CoC’s decision regarding SRA’s eligibility was based on materials that were on the record.

Therefore, SRA was eligible to submit a Resolution Plan as per the Invitation for Expression of Interest, and there was no ground to interfere in the impugned order. Thus, all appeals were to be dismissed.

List of Cases Reviewed

• Abhijit Realtor & Infraventures (P.) Ltd. v. Rohit Mehra [2025] 174 taxmann.com 618 (NCLT-Mum.) [Para 53] affirmed.

List of Cases Referred to

• Apartments Welfare Assn. v. NBCC (India) Ltd. (2022) 1 SCC 401 (para 50).