# In the matter of Ultratech Nathdwara Cement Ltd. Vs. State of Rajasthan & Ors. S.B. Civil Writ Petition No. 7258/2019 Connected With S.B. Civil Writ Petition No. 6851/2019

> HC judgment dated 2021-11-08. Citation: TCN-2021-HC-00011. The case involves Ultratech Nathdwara Cement Ltd., a subsidiary of UltraTech Cement Limited,…

- **Court:** HC
- **Order date:** 8 Nov 2021
- **Citation:** TCN-2021-HC-00011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ultratech-nathdwara-cement-ltd-vs-state-of-rajasthan-ors-sb-civil-writ-petition-7eb3bf83

## Summary

### Background

The case involves Ultratech Nathdwara Cement Ltd., a subsidiary of UltraTech Cement Limited, challenging a demand notice issued by the State of Rajasthan. The company participated in the Corporate Insolvency Resolution Process (CIRP) of Binani Cement Ltd., whose debts to the Bank of Baroda led to an application under Section 7 of the Insolvency & Bankruptcy Code, 2016. Ultratech's resolution plan was approved by the Committee of Creditors and the NCLAT. The State of Rajasthan issued a demand notice for dues, which Ultratech challenged, arguing it contravened the approved resolution plan.

## Facts

Ultratech Nathdwara Cement Ltd. is a subsidiary of UltraTech Cement Limited. Binani Cement Ltd. was unable to pay its debts to the Bank of Baroda, leading the bank to file an application under Section 7 of the Insolvency & Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT) admitted the application, initiating the Corporate Insolvency Resolution Process (CIRP). Ultratech participated in the CIRP, and its resolution plan was approved by the Committee of Creditors and the National Company Law Appellate Tribunal (NCLAT) on 2018-11-14. The Supreme Court upheld the NCLAT's order. The State of Rajasthan issued a demand notice to Ultratech for dues. Ultratech challenged the demand notice, arguing it violated the approved resolution plan. The demand notice was

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## Issues and analysis

### Issue 1: Whether the demand notice issued by the State of Rajasthan is valid, considering the approved …

**Ratio:** Section 31 of the Insolvency and Bankruptcy Code (IBC) stipulates that once a resolution

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**Reasoning:** The court reasoned that the Hon'ble Apex Court has categorically laid down the law that

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**Interpretation:** Section 31 of the IBC is interpreted to mean that the approval of a resolution

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**Application:** In this case, the State of Rajasthan's demand notice was for dues that were not

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## Parties

- **Judges:** PUSHPENDRA SINGH…
- **Appellants:** Ultratech…
- **Respondents:** Binani Ceme…; State of Ra…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2018-11-14 — NCLAT App…**: The National Company Law Appellate Tribunal…

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