# In the matter of Ashok B. Jiwrajka, Director of Alok Infrastructure Ltd. Vs. Axis Bank Ltd. CA (AT) (Insolvency) No. 683-2018

> NCLAT judgment dated 2019-01-16. Citation: TCN-2019-NCLAT-00867. The case involves an appeal against an order dated October 24, 2018, initiating a Corporate…

- **Court:** NCLAT
- **Order date:** 16 Jan 2019
- **Citation:** TCN-2019-NCLAT-00867
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashok-b-jiwrajka-director-of-alok-infrastructure-ltd-vs-axis-bank-ltd-ca-ad5a45cb

## Summary

### Background

The case involves an appeal against an order dated October 24, 2018, initiating a Corporate Insolvency Resolution Process (CIRP) against 'Alok Infrastructure Ltd.' (Subsidiary Company). A separate CIRP had already been initiated against 'Alok Industries Ltd.' (Holding Company). Another CIRP was initiated against 'Alok Infrastructure Ltd.' pursuant to an application by another financial creditor. The appellant, 'Mr. Ashok B. Jiwrajka', Director of 'Alok Infrastructure Ltd.', preferred this appeal.

## Facts

A Corporate Insolvency Resolution Process (CIRP) was initiated against 'Alok Industries Ltd.' (Holding Company). Subsequently, another CIRP was initiated against 'Alok Infrastructure Ltd.' (Subsidiary of Alok Industries Ltd.) based on an application by another financial creditor. 'Mr. Ashok B. Jiwrajka', Director of 'Alok Infrastructure Ltd.', filed an appeal against the order dated October 24, 2018, which initiated the CIRP against 'Alok Infrastructure Ltd.'. The appellant's counsel argued that the CIRP against 'Alok Infrastructure Ltd.' should be stayed until the CIRP against 'Alok Industries Ltd.' is decided under Section 31. A resolution plan for 'Alok Industries Ltd.' has been approved and placed before the Adjudicating Authority in July 2018, but no decision has

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process initiated against 'Alok Infrastructure Ltd.' …

**Ratio:** A separate Corporate Insolvency Resolution Process can be initiated against a different

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**Reasoning:** The court reasoned that 'Alok Infrastructure Ltd.' is a separate corporate entity from

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**Interpretation:** The interpretation is that the initiation of CIRP against one corporate entity

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**Application:** The ratio and reasoning were applied to the facts by allowing the CIRP against

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Ashok B. Ji…
- **Respondents:** Alok Infrastructur…; Axis Ban…
- **Advocates:** Arun Kath…; Rohit G…; +3 more

## Timeline

- **2018-10-24 — Order Da…**: Order passed initiating Corporate Insolvency Resolution Process against ‘Alok…
- **2018-07-01 — Resolution Plan…**: Resolution plan for ‘Alok Industries Ltd.'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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