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2020 (6) TMI 455 - Tri - Insolvency and BankruptcyConsolidation of respective insolvencies of LCL and two of its wholly-owned subsidiaries, WAML and Dasve Convention Centre (DCCL) - Resolution of the Debt of Warasgaon Power Supply Limited (WPSL) and Dasve Retail Limited (DRL) - HELD THAT:- DRL is a wholly owned subsidiary of LCL. It has only one Financial Creditor, i.e. Central Bank of India. In case of DRL also the entire Financial Debt has been Admitted as Financial Debt of LCL pursuant to the Corporate Guarantee and Security provided by LCL. The lone Financial Creditor, i.e. Central Bank of India, as an Applicant in the consolidation Application has mentioned that the financial Debt of DRL be resolved as part of the consolidated Resolution Plan for LCL. Keeping in view that DRL is a 100% subsidiary of LCL the infrastructure is not owned by DRL but by LCL and also revenue stream of DRL will cease to exist once LCL Resolution comes into effect, therefore, it is a fit case for where the Resolution of DRL be linked and decided with LCL. However, since DRL is not under CIRP "Consolidated" CoC of LCL, WAML and DCCL where the sole Creditor of DRL, i.e. a Member, may discuss their issue and take a call on consolidating it with the Consolidated Resolution Plan. The fate of each of the 100% subsidiaries of LCL viz. WAML, DCCL, DRL and WPSL depends on the outcome of LCL's CIRP. Looking at the substantial inter-dependence, this Bench is of the view that without consolidation of LCL group companies no Resolution of Insolvency of LCL and its 100% subsidiaries is possible and would result into a loss of huge value to all stakeholders and thereby defeating the objective of the Code. Petition allowed.
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