NCLT Approves Resolution Plan for Dunnimaa Engineers Submitted by Amphitrite Subsea [Read Order]

The National Company Law Tribunal (NCLT), Mumbai bench has approved the resolution plan submitted by Amphitrite Subsea Private Limited for the revival of Dunnimaa Engineers and Divers Enterprises Private Limited, which was undergoing Corporate Insolvency Resolution Process (CIRP) since November 2022.

The CIRP was initiated on 24.11.2022 by Omkara Asset Reconstruction Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). Kamal Rajkumar Sharma was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional (RP).

During the process, the RP faced significant delays in obtaining necessary information from the suspended board of directors of the Corporate Debtor, which hindered the initial progress of the CIRP.

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After following due procedure, including publication of FORM G inviting Expressions of Interest, two resolution plans were received. After thorough evaluation during multiple CoC meetings, the Committee of Creditors (CoC) approved the resolution plan submitted by Amphitrite Subsea Private Limited with 100% voting share in their meeting held on 21.09.2023.

The RP had initially filed an application (IA No. 5281 of 2023) seeking approval of the resolution plan, but the Tribunal granted liberty to withdraw it and file a fresh application with additional clarifications. Accordingly, an addendum dated 20.01.2024 was submitted, which was approved by the CoC.

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The NCLT observed that the resolution plan complied with the requirements of Section 30(2) of the IBC and related regulations. The Tribunal relied on Supreme Court precedents, including K. Sashidhar v. Indian Overseas Bank and Essar Steel India Limited v. Satish Kumar Gupta, to emphasize that its role is limited to verifying whether the resolution plan as approved by the CoC meets the requirements specified in Section 30(2) of the IBC.

The Tribunal noted that it cannot modify the resolution plan approved by the CoC in their commercial wisdom, and its discretion is circumscribed by Section 31 of the IBC.

The bench comprising Shri Anil Raj Chellan (Member, Technical) and Shri K.R. Saji Kumar (Member, Judicial) approved the resolution plan with several conditions as the Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code

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