# In the matter of Abhiruchi Vision Private Limited vs. Jayaswal Neco Industries Limited Company Appeal (AT) (Insolvency) No. 350 of 2023

> NCLAT judgment dated 2023-07-04. Citation: TCN-2023-NCLAT-00805. The appeal challenges the order dated 09.02.2023 passed by the Adjudicating Authority (NCLT,…

- **Court:** NCLAT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLAT-00805
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhiruchi-vision-private-limited-vs-jayaswal-neco-industries-limited-company-app-5f1e5bf7

## Summary

### Background

The appeal challenges the order dated 09.02.2023 passed by the Adjudicating Authority (NCLT, Mumbai Bench) which allowed I.A. No. 2973 of 2022 filed by the Corporate Debtor, Jayaswal Neco Industries Limited (JNIL), dismissing the Section 7 application filed by the Appellant.

## Facts

An Indenture of Family Settlement (IFS) was executed between Basant Lal Shaw (BLS) and his sons, dividing the Jayaswal Family into two groups: BLS Group and MKJ Group.

Under the IFS, BLS Group was allotted Jayaswal Neco Industries Limited (JNIL), and MKJ Group was allotted Corporate Ispat Alloys Limited (CIAL).

The IFS provided that JNIL would be entitled to the Strip Mill Division of CIAL, which was to be demerged from CIAL and amalgamated with JNIL.

JNIL made payments to CIAL towards lease rental for the Strip Mill Division until 31st August, 2010, after which it stopped making payments.

Between August, 2010 and December, 2012, CIAL made payments to its lenders of the Strip Mill Division amounting to Rs. 104,43,67,347.94/-.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing I.A. filed by the Corporate Debtor for …

**Ratio:** The Adjudicating Authority did not err in allowing the I.A. as the claim was based on a

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**Reasoning:** The NCLAT agreed with the Adjudicating Authority's findings that the alleged debt arose

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**Interpretation:** The NCLAT interpreted the IFS and the subsequent events to conclude that there

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**Application:** The NCLAT applied the principles of financial debt under the IBC to the facts

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Abhiruchi Vision…
- **Respondents:** Jayaswal Neco…
- **Advocates:** Krishnendu…; Sandeep…; +13 more

## Timeline

- **2023-02-09 — Order Da…**: Order dated 09.02.2023 passed by the Adjudicating Authority (National Company Law…
- **2023-07-04 — Judgement…**: Judgement Date 04th…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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