# In the matter of State of Karnataka and Ors Vs Tiffin Barytes Asbestos and Paints Ltd and Anr WP No. 5002-2019

> HC judgment dated 2019-03-22. Citation: TCN-2019-HC-00018. The State of Karnataka filed a writ petition challenging the order dated 11.12.2018 passed by the…

- **Court:** HC
- **Order date:** 22 Mar 2019
- **Citation:** TCN-2019-HC-00018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/state-of-karnataka-and-ors-vs-tiffin-barytes-asbestos-and-paints-ltd-and-anr-wp-dd064a2c

## Summary

### Background

The State of Karnataka filed a writ petition challenging the order dated 11.12.2018 passed by the National Company Law Tribunal (NCLT), Chennai in MA No.632/2018 in company petition No.CP/39/IB/2018. The NCLT order had set aside the order passed by the Under Secretary to Government, Commerce & Industries Department (Mines), State of Karnataka, which rejected the deemed extension of mining lease No.ML 2293. The NCLT directed the respondents to execute Supplemental Deeds extending the period of Mining Lease up to 31.03.2020, in accordance with S.8A(6) of the Mines and Minerals (Development and Regulation) Act, 1957.

## Facts

The State of Karnataka, through its Department of Commerce and Industries, challenged an order passed by the National Company Law Tribunal (NCLT), Chennai. The NCLT order pertained to MA No.632/2018 in company petition No.CP/39/IB/2018, which involved Tiffin's Barytes Asbestos and Paints Ltd., a company undergoing Corporate Insolvency Resolution Process (CIRP). The NCLT had set aside an order by the Under Secretary to the Government of Karnataka, which had rejected the deemed extension of mining lease No.ML 2293. The NCLT further directed the execution of Supplemental Deeds to extend the mining lease until 31.03.2020, as per S.8A(6) of the Mines and Minerals (Development and Regulation) Act, 1957. The State of Karnataka filed a writ petition against this NCLT order,

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## Issues and analysis

### Issue 1: Whether the High Court should set aside the order passed by the National Company Law Tribunal …

**Ratio:** The principle of judicial review allows a higher court to review the decisions of lower

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**Reasoning:** The High Court, considering the submissions made by the parties, decided not to delve

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**Interpretation:** This indicates a preference for the NCLT to reconsider the matter with all

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**Application:** The High Court applied this principle by setting aside the NCLT order and

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## Parties

- **Judges:** L. Narayana…; P.S. Dinesh…
- **Appellants:** The State of…
- **Respondents:** TIFFIN'S BARYTES…; Sri. Vasu…

## Timeline

- **2018-11-29 — NCLT Not…**: NCLT issued a notice to which the State…
- **2018-12-11 — NCLT Ord…**: National Company Law Tribunal, Chennai passed an order in MA No.632/2018 in company…

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