Krishna Chamadia vs Respondent(S)

IN THE MATTER OF: Krishna Chamadia (R.P of S.V. Distributors Private ...Appellant(s) Limited) Versus -- ...Respondent(s)

Present: For Appellant : Mr. Krishnendu Datta, Sr. Advocate with Mr. Anish Agarwal, Mr. Tejas Aggarwal, Mr. Pratik Chakma, Ms. Natasha Bagga, Mr. Abhinav Maurya, Ms. Alina Merin, Advocates

For Respondents : Mr. Prithu Garg, Mr. Shivam Singh, Mr. Ashutosh Arvind Kumar, Advocates for SRA

ORDER

(Hybrid Mode)

23.02.2026 Heard Ld. Counsel for Appellant and Ld. Counsel appearing

for Successful Resolution Applicant (SRA).

2. This Appeal has been filed by the Resolution Professional challenging the

order dated 09/01/2026 passed in I.A. (Plan) No. 47 of 2025. Adjudicating

Authority by the impugned order has rejected the Resolution Plan holding that

the full Performance Security has not been submitted by the SRA. Amount of

Rs. 1.9 crores was to be given as performance security, whereas SRA has given

security of only Rs. 85,10,000/-, being 10% of the infusion amount.

3. Adjudicating Authority in Para 47, has made following observations by

rejecting the Resolution Plan).

"47. In view of the foregoing analysis, this Tribunal holds that the Resolution Plan approved by the Committee of Creditors is in violation of the mandatory terms of the RFRP, particularly with respect to the furnishing of Performance Security, and therefore fails to satisfy the requirements of Section 30(2) and Section 31 of the Insolvency and Bankruptcy Code, 2016."

4. Ld. Counsel for Appellant submitted that although, Appellant has

submitted that Committee of Creditors has power to relax the amount of

performance security and it has relaxed, but the SRA has already deposited the

balance amount of 1.1 crores on 04/02/2026. He further submitted that the

CoC with 67% has authorized the appeal to be filed.

5. Ld. Counsel for Resolution Professional submitted that in view of the RP

having deposited the full performance security, and there was no objection with

regard to the Resolution Plan apart from full performance security having not

been deposited.

6. In the facts of the present case, now the full performance security has

been deposited, we are of the view that ends of justice be served in reviving the

application for Plan approval in I.A. (Plan) No. 47 of 2025 for fresh consideration

before the Adjudicating Authority.

7. Adjudicating Authority shall proceed to consider the Plan taking into

consideration performance security has been deposited.

8. With these observations, we dispose of the Appeal.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Prerana/md

2 of 2