# M/s. Jeel Kandla Service & Anr. vs. Union of India and Ors.

> HC judgment dated 2026-05-15. Citation: TCN-2026-SC-00040. M/s. Jeel Kandla Service & Anr., post-CIRP creditors of Hindusthan Glass and Industries Limited…

- **Court:** HC
- **Order date:** 15 May 2026
- **Citation:** TCN-2026-SC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/ms-jeel-kandla-service-anr-vs-union-of-india-and-ors-82axe

## Summary

### Background

M/s. Jeel Kandla Service & Anr., post-CIRP creditors of Hindusthan Glass and Industries Limited (HNGIL), sought payment for transportation services. The NCLT ordered partial payment but disallowed interest, leading to an appeal by the appellants before the NCLAT. Concurrently, a resolution plan for HNGIL by Independent Sugar Corporation Limited (Respondent No. 4) was approved by the NCLT, which the appellants unsuccessfully challenged. Subsequently, Respondent No. 4 applied to the Regional Director to shift HNGIL's registered office from West Bengal to Mumbai. Despite pending appeals against the resolution plan before the NCLAT, the Regional Director allowed the shifting. The appellants challenged this decision via a writ petition, which a Single Judge dismissed,

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## Facts

Hindusthan Glass and Industries Limited (HNGIL) went into Corporate Insolvency Resolution Process (CIRP) on October 21, 2021.

M/s. Jeel Kandla Service & Anr. (appellants) claimed to be post-CIRP creditors of HNGIL for transportation services.

The National Company Law Tribunal (NCLT) ordered payment of 75% of the appellants' dues but disallowed interest under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).

The appellants preferred an appeal before the National Company Law Appellate Tribunal (NCLAT) regarding the disallowed interest.

Independent Sugar Corporation Limited (Respondent No. 4) submitted a resolution plan to revive HNGIL, which was approved by the NCLT on August 14, 2025.

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## Issues and analysis

### Issue 1: Whether the Regional Director erred in allowing the shifting of the registered office of Hindusthan …

**Ratio:** The second proviso to Rule 30(9) of the Companies (Incorporation) Rules, 2014,

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**Reasoning:** The proviso was specifically incorporated in 2023 to prevent the alienation of corporate

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**Interpretation:** The term 'and' in the second proviso should be read as 'or' to reflect the

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**Application:** The Regional Director failed to strictly apply the second proviso to Rule 30(9)

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## Parties

- **Judges:** Shampa Sark…; Ajay Kumar Gupta,…
- **Appellants:** M/s. Jeel Kandla…; H.N.G Karmachari…; +2 more
- **Respondents:** Hindusthan Glass…; Union of…; +1 more
- **Other parties:** Kalabu…
- **Advocates:** Anindya Kumar…; Saptangsh…; +26 more

## Timeline

- **2021-10-21 — CIRP Init…**: Hindusthan Glass and Industries Limited (HNGIL) went into Corporate Insolvency Resolution…
- **2025-08-14 — Resolution Plan…**: NCLT approved the resolution plan submitted by Independent Sugar Corporation Limited for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(b) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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