**Case Study: 5** Mr. Murari Lal Chowdhury is a renowned businessman from Bhatinda (Punjab). He founded Supreme Grains Ltd. ("SGL") in the year 2007. The initial members included himself, his wife Gayatri Chowdhury, and his two sons Sagar and Sanjay. Mr. Murari started procuring wheat and other pulses from the local farmers and after processing and packing, the same were supplied to local markets. He started his company with an initial capital of 50 lacs and controlled 90% of the company's voting share. Within a short span of 5 years the company became a household name with distribution network spread all over the states of Punjab and Haryana. Seeing the opportunities offered by real estate sector, Mr. Murari decided to expand SOL's business into this sector. Accordingly, during the third quarter of financial year 2017-18, SOL developed and launched a new residential-cum commercial project in Bhatinda after seeking registration under the Real Estate (Regulation and Development) Act, 2016 (RERA). When the commercial launch was organized, it was announced by SOL that the project is available at an attractive rate of ₹8,800 per square foot and the units are very spacious since they admeasure 5,000 square feet built-up area with total 100 units. Also, marketing brochure contained the following features included in the project: • Italian marble in the kitchen • 5 Star rated Air Conditioners • 3 Star rated Geysers • French Windows of reputed brand • Elevators of top brands • Open parking slot at a nominal price of ₹11,000 • Massive multi-level kids play area • Ducts attached to each flat • Comprehensive insurance for the project Marketing brochure mentioned that builder provides warranty of 5 years of the products with additional free 1 year warranty. It was informed in the marketing material that the project would be completed in a time frame of 5 years. Mr. Bhakt was one of the allottees who bought flat number 205 in Tower 1 of the project after several rounds of meeting with SGL. It was agreed with him that a Ganesh Temple would be constructed as a part of the project in the eastern side of Podium 2. During the course of the project, an intimation along with a certificate from engineer was sent to all the allottees that due to a technical objection received from fire department, temple will have to be shifted from Podium 2 to Podium 3. When this fact came to the knowledge of Mr. Bhakt, he consulted his lawyer who advised to file a complaint against the builder with the authorities. Also, he reported several defects in the features contained in the marketing brochure. The project was completed on time and the invitation was sent to all the allottees to take physical possession of their respective units. After staying for about 8 months in the flat number 406 in Tower 4, Mr. Sultan informed builder that he is facing serious issues with the quality of MCB provided and there is a potential risk of short circuit which could lead to massive losses to the building as a whole. On investigation by an independent electrician appointed by Mr. Sultan, it was found that lining of electricity wire was done along with water pipe lines and due to internal damage, problem is arising. However, the promoter was harping on the fact that the issue is in the MCB and not in the wirings. The investigation done by electrician was confirmed by other electricians who surveyed a few other flats. Further, Mr. Sultan complained that the grass given by the builder in the flower bed area was of sub-standard quality and needs replacement. With the onset of Covid-19 pandemic and the resultant slowdown in real estate sector, "SOL" got under financial pressure. SOL was now in default in repayment. Repeated follow up by the Financial Institutions with the corporate debtor, "SOL", for submitting its specific plan of action for repayment of dues did not evoke any meaningful response. Therefore, after a joint lenders' meeting, all the financial creditors unanimously decided to apply under the provisions of IBC, 2016, to the NCLT for starting the process of insolvency resolution in respect of the corporate debtor, "SOL". Financial creditors filed an application before NCLT which was admitted by NCLT on 20th May, 2021 and orders issued for commencement of a moratorium period of 180 days, appointed Mr. Ram, an IRP. Mr. Ram made a public announcement inviting claims from all concerned. Based on the claims filed, the following creditors were identified: D 1: Financial debts owed to unsecured creditors - 10 crores. D 2: Workmen's dues for the period of 24 months preceding the liquidation commencement date -30 Crores 03: D3: Debts owed to a secured creditor who has relinquished his security - ₹60 crores. 04: Debts owed to Central Government - 10 crores. 05: Debts owed to a secured creditor for an amount unpaid following the enforcement of security interest - 25 crores. Mr. Ram, who has been appointed as Interim Resolution Professional, in the last financial year, had given some legal opinions on financial matters to "SOL" and had charged fees. Mr. Murari is not clear on the provisions of Insolvency and Bankruptcy Code, 2016 and requested his Company Secretary to advise him on the vital objectives which are intended to be achieved with the Code and also whether the initiation of insolvency resolution process can be done by creditors only or by debtor also. Mr. Murari also wants to know the specified procedure and terms of appointment of an IRP. Answer the following questions: