# In the matter of Birla Financial Distribution Ltd. Vs. Shri Jagdish Singh Nain,  RP HBN Foods Ltd. Company Appeal (AT) (Ins.) No. 545 of 2022

> NCLAT judgment dated 2022-11-02. Citation: TCN-2022-NCLAT-00128. The appeal was filed under Section 61 of the IBC Code, 2016, against an order dated…

- **Court:** NCLAT
- **Order date:** 2 Nov 2022
- **Citation:** TCN-2022-NCLAT-00128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/birla-financial-distribution-ltd-vs-shri-jagdish-singh-nain-rp-hbn-foods-ltd-com-696cf141

## Summary

### Background

The appeal was filed under Section 61 of the IBC Code, 2016, against an order dated 31.12.2021 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) in Case No. IB-1359/(ND)/2019. The Adjudicating Authority admitted an application filed under Sections 66, 68, 69, 70, and other provisions of the IBC by the Resolution Professional, directing the Respondents (including the Appellant) to contribute jointly and severally to the assets of the Corporate Debtor, which was under Corporate Insolvency Resolution Process (CIRP), and directed criminal prosecution of the Respondents under Section 69 of the IBC. Respondent No. 21, who is the present Appellant, preferred the appeal.

## Facts

HBN Foods Ltd, the Corporate Debtor, was incorporated as a private limited company on 01.03.2013 and later converted into a public limited company in July 2013. The main objective of the Corporate Debtor was the manufacture of food products and beverages, but it launched a collective investment scheme in August 2013, collecting money from the public without SEBI registration. The investment scheme was stopped abruptly without repayment of the deposit collected from the public, leading to an application being filed before the Adjudicating Authority for initiation of CIRP of the Corporate Debtor. The Adjudicating Authority ordered initiation of CIRP proceedings on 14.08.2018 and appointed an Interim Resolution Professional (IRP). The IRP appointed a chartered accountant

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in foreclosing the Appellant's right to file a …

**Ratio:** Principles of natural justice require that parties be given a fair opportunity to present

…

**Reasoning:** The NCLAT noted that the Appellant had explained his inability to send a response due to

…

**Interpretation:** The right to be heard is a fundamental principle of natural justice, and any

…

**Application:** The NCLAT applied the principles of natural justice to the facts of the case,

…

## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +1 more
- **Appellants:** Birla Financial…
- **Respondents:** HBN Food…; Jagdish Sin…

## Timeline

- **2013-03-01 — Incorporation of HBN…**: HBN Foods Ltd was incorporated…
- **2013-07-01 — Conversion to Public…**: HBN Foods Ltd was converted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/birla-financial-distribution-ltd-vs-shri-jagdish-singh-nain-rp-hbn-foods-ltd-com-696cf141