M/s. Vicky Motilal Vani & Ors. vs Malind Properties Pvt. Ltd.

IA (Plan) 04/2025 is approved vide separate order.

List the main C.P on 16.12.2025 for report of implementation of Plan.

Mr. Ratnakar Shetty (Resolution Professional of the Corporate Debtor') has filed this application on 17.06.2025 under Section 30(6) read with Section 31 of the Insolvency and Bankruptcy Code, 2016 and Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking approval of the Resolution Plan of the Corporate Debtor submitted by Krishnaiah Projects Private Limited (Successful Resolution Applicant/SRA), and approved by the Committee of Creditors in its 20^th meeting held on 07.05.2025 with 100% voting share vide voting results dated 16.05.2025.

M/s. Malind Properties Private Limited, Corporate Debtor was admitted to undergo Corporate Insolvency Resolution Process vide order dated 28.02.2023 in CP (IB) No. 65/BB/2022 and Mr. Ratnakar Shetty (IBBI/IPA-001/IP-P01630/2019-2020/12718) was appointed as the Interim Resolution Professional. Subsequently vide order dated 29.05.2023 passed in IA 288/2023, he was confirmed as the Resolution Professional of the Corporate Debtor. The Authorized Share Capital of the Respondent/Corporate Debtor is Rs.3,10,00,000 and Paid-up Capital is Rs.3,04,79,500.

The key dates and events during the Corporate Insolvency Resolution Process period are tabulated hereunder:

Registered Valuers were appointed on 17.04.2023, the Fair Value and Liquidation value of the Corporate Debtor is as follows:

M/s Krishnaiah Projects Private Limited is a group company of the Bollineni Group incorporated on 17.06.1996 having its registered office at M.No. 8-2-502/1/A, Jivi Towers, Road No. 7, Banjara Hills, Hyderabad, Telangana - 500034. The Successful Resolution Applicant (Including Group Companies) is engaged in the field of infrastructure, constructions and real estate development and has successfully completed several infrastructure and realty projects over the past 50 years throughout all States of India and internationally across various centres such as Dubai, Afghanistan and Nepal prominently known for delivering cutting-edge infrastructure solutions. The SRA’s group is now one of the top 5 infrastructure Companies of India and is renowned as one of India’s leading and most successful business groups. Since the SRA is involved in real estate development, its expertise is tailor-made to the requirements of the Corporate Debtor, which too are involved in the same field. The details of Experience in Turnaround of sick/stressed assets where RA has more than 26% stake is tabled below:-

The Resolution Applicant meets the criteria provided by the CoC and is also eligible under Section 29A of the Code, affidavit regarding the same is at Annexure L Further, the due diligence report under Regulation 36A (8) has been submitted as Annexure J to the Instant Application, confirming the eligibility of the SRA.

The RP has filed a memo on 26.09.2025 explaining the feasibility and viability of the Plan. According to him, the CoC had deliberated over the Resolution Plan (“Plan”) submitted by M/s Krishnaiah Projects Private Limited, and found it to be feasible and viable on the SRA informing it of the enormous funding to be received from WSB Real Estate Partners Pvt. Ltd and Kotak Mahindra Bank. The in-principle support letter has given by WSB Real Estate Partners Pvt. Ltd for an amount of Rs. 100,00,00,000. Further, the promoters, whole-time directors, and directors of the SRA are highly qualified professionals with extensive experience in the promotion and development of real estate projects. The SRA having over 15 years of experience in the field, possesses an experience in turnaround of sick/ stressed assets and the SRA has successfully undertaken projects in Bangalore, Chennai, Hyderabad, Mysore, and even Dubai. Given that the Corporate Debtor is also engaged in the real estate sector, the SRA would, in fact, be an ideal fit in the present scenario. SRA has a net owned funds of Rs. 42.91 Crores as per the audited financials for F.Y. 2023-24, and Rs. 65 Crores as per the draft financials for the F.Y. 2024-25 along with the required borrowing capacity to raise construction finance to complete the project, and enables the feasibility and viability of the Plan.

The clause 3.17 of the Resolution Plan states that successful Resolution Applicant has a net worth of Rs.42.91 Crore and funds for completing the project will be raised through equity share capital and quasi-equity share capital to the extent of Rs.20 Crores in 2 tranches from the Promoters of the Successful Resolution Applicant and an in principle sanction letter for Rs.100 Crore has been obtained from M/s. Walton Real Estate Partners. Thereafter in compliance of order dated 22.08.2025. Applicant had filed the in-principle sanction letter obtained from M/s. Walton Real Estate Partners by the Successful Resolution Applicant for 100 Crores vide memo filed on 26.09.2025. Further, the Directors/Chairman of the SRA having a net-worth of Rs.6,05,73,07,779 as per Net Worth certificate of Directors/Chairman of the SRA, copy whereof is filed in memo dated 26.09.2025. The SRA has net owned funds of Rs. 42.91 Crores as per the audited financials for F.Y. 2023-24, and Rs. 65 Crores as per the draft financials for the F.Y. 2024-25. The SRA has furnished the Performance Bank Guarantee Annexure –K, of Rs.1,50,00,000 with validity till 20.05.2027.

The Plan does not propose any reduction of share capital; however, the entire issued, subscribed, and paid-up share capital of the Corporate Debtor shall be cancelled and Resolution Applicant de facto shall acquire 100% of the outstanding shares of the Corporate Debtor from the erstwhile promoters. Hence, SRA will be holding 100% share capital.

The Applicant vide memo filed on 26.09.2025 stated that the CoC in its 20^th Meeting held on 07.05.2025 has passed a resolution with requisite majority that HDFC Bank along with other members of the CoC i.e. Homebuyers will be pursuing the applications for avoidance transaction filed under Section 66 of the Code, on approval of the resolution plan, bear the incidental costs associated with such application on behalf of CoC, and be the exclusive beneficiaries of the proceeds arising from the said application. The net proceeds, after deducting the incidental costs incurred, shall be distributed among such participating creditors in proportion to their respective admitted claims. The Applicant at para 11 of the Form-H has stated that amount of Regulatory fee payable (0.25%) to the Board under Regulation 31A is Rs. 4,85,716 and the SRA in clause 3.8 of the Plan has stated that any applicable IBBI regulatory fee would be paid by the SRA. Further it is stated in Clause 3.19 of the Plan that the Cases filed by home buyers on the corporate debtor before any judicial forum, for any defects/liability in the work done by the Corporate Debtor prior to CIRP period have to be treated as withdrawn, once the Resolution Plan is approved. All existing home buyers agree not to approach RERA or any other Consumer Forum Authority against the Resolution Applicant, in respect of matters prior to the approval of the Resolution Plan and the Resolution Applicant will not have any liability in relation to any litigation pending with the corporate debtor in relation to any matter connected to its business, pertaining to the period prior to CIRP.

Heard Sh. Abhijit Atur, Advocate, learned counsel for the RP and carefully perused the pleadings on record.

On 22.08.2025, following order was passed:

In compliance, the Applicant has filed memo on 26.09.2025 and same is taken on record.

Post commencement of CIRP, CoC was constituted by the RP. The details of the creditors, the distribution of voting share among them and the position of voting for the Resolution Plan is as under (Para 6 of Form H):

The details of stakeholders and the amounts provided for them under the Resolution Plan is given in Para 7B of Form H, given below:

The compliance of the Resolution Plan as per Form H is hereunder:

At this juncture it is necessary to refer to Section 30(2) of IBC which is as follows:

REGULATORY COMPLIANCES: The compliance of Section 30(2) of the Code is given in Annexure to Form-H (supra). The same is being further examined as under:

It is further clarified that in terms of Regulation 38(1) of the CIRP Regulations, all amounts due to the operational creditors under the Plan shall be given priority in payment over the Financial Creditors and there are no dissenting financial creditors as both the Financial Creditors voted in favour of the resolution plan submitted by the SRA for the Corporate Debtor.

- Resolution Professional; - One member of the Resolution Applicant - Three member nominated by the Committee of Creditors.

The costs involved in its meetings, visits etc. and the fee of the RP will be borne by the Resolution Applicant within reasonable limits, as per requirements and as per prior approvals, until the dues of the creditors are fully paid off or until all the home buyers are delivered the apartments. The Sales and Marketing team of the RA would also be available for any support required by the home buyers and RA will ensure that all the requirements and needs of the customers are taken care of to the maximum extent possible.

Regulation 38(1): Clause 3.11 on Page 46 of the Plan, is in compliance with Regulation 38(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 the amount due to the operational creditors under the Resolution Plan has been given priority in payment over financial creditors.

Regulation 38(1A): Clause 3.12 at pg no.49 of the plan states that the Resolution Applicant has considered the interest of all the stakeholders and has accordingly proposed to make payment into the stakeholders in the following manner:

Regulation 38(1B): As mandated under Regulation 38(1B) of the CIRP Regulations, the Resolution Applicant confirms in Clause 3.21 on Pg. 49 of the Plan that as on date the Resolution Applicant or any of its related parties has not failed to implement or contributed to the failure of implementation of any Resolution Plan approved under the code.

Regulation 38(3)(a): Clause 2.3 at pg. No.20 of the plan deals with cause of default by stating that the primary cause of the Corporate Debtor's failure stems from shortcomings in its management, coupled with the impact of demonetization and the downturn in the real estate sector. Accordingly, the SRA has concluded that no extraneous or external factors need to be taken into account while formulating the present Resolution Plan. The Successful Resolution Applicant deals with the cause of default by submitting a Resolution Plan with an intent to resolve the insolvency of the Corporate Debtor and primarily maximize the value of the assets of the Corporate Debtor by addressing the interests of the financials creditors inclusive of the homebuyers. Further, as per Clause 3.1 of the Plan relating to Cost Estimation of project and mode of funding where the analysis of the SRA demonstrates that SRA would be able to recover its capital and cost of capital, while also generating a profit upon completion of the project. Thus, the Resolution Plan addresses the various causes of default and is in accordance with Regulation 38(3) (a).

Regulation 38(3) (b): The RP has filed a memo in 26.09.2025 explaining the feasibility and viability of the Plan and stating that CoC had deliberated into the Resolution Plan ("Plan") submitted by M/s Krishnaiah Projects Private Limited, SRA, and has determined it to be feasible and viable on account of the SRA informing the COC of the enormous funding to be received from WSB Real Estate Partners Pvt. Ltd and Kotak Mahindra Bank. The in-principle support letter has been given by WSB Real Estate Partners Pvt. Ltd for an amount of Rs. 100,00,00,000. Further, the promoters, whole-time directors, and directors of the SRA are highly qualified professionals with extensive experience in the promotion and development of real estate projects and have the required borrowing capacity to raise construction and finance to complete the project which enables the feasibility and viability of the Plan.

Regulation 38(3)(c) The repayment to various creditors will be completed within 2 years of plan approval. In case home buyers choose to opt for home instead of refund, construction will be completed and Occupation of Certificate will be applied within 57 months of plan approval. Further, Clause 3.6 of the Plan lays down the Implementation Schedule produced below, for reference:

Clause 3.23 of the Plan talks about constitution of a Monitoring Committee to oversee the entire process and to further ensure that the all of the necessary rules and regulations under the Insolvency and Bankruptcy Code, 2016 are complied with. The SRA has requested for a grace period of 6 months for settlement of amounts due to creditors under CIRP if there are any unforeseen circumstances. This Adjudicating Authority has gone through and examined the said prayer but does not find any justification for the same when already sufficient period will be at the disposal of SRA to arrange funds to meet the undertaken obligation.

(d): Regulation 38(3): The time-line for approvals of Resolution Plan is stated in Clause 3.6 of the Resolution Plan. On the approval of the Resolution Plan, the Resolution Applicant through the Corporate Debtor will begin the process of obtaining necessary sanctions, approvals, and licences as per the implementation schedule and the same is tabled below:

The Prayer has been examined and it is observed that for such reliefs and exemptions, the Resolution Applicant will have to approach the respective statutory authorities for being accorded and decided as per the provisions of concerned existing laws and landmark judgements. Further, the approval of the Resolution Plan shall not in itself be construed as waiver of any statutory obligations/liabilities and any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned in light of the Judgment of Supreme Court in Ghanshyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited (Civil Appeal no. 8129 of 2019).

In the circumstances and for the aforesaid reasons, the incumbent application bearing I.A.(Plan) No. 4 of 2025 is allowed and accordingly:

a. The moratorium imposed vide order dated 28.02.2023 in the main Company Petition ceases to operate from the date of this order.

b. The resolution professional shall forward all records relating to the conduct of the CIRP and the Resolution Plan to the Board to be recorded/uploaded on its database.