# In the matter of Falcon Tyres Vs. Belthangady Taluk Rubber Growers Marketing & Processing Co-op. Society Ltd. & Anr. CA (AT) No. 206-2017

> NCLAT judgment dated 2017-10-09. Citation: TCN-2017-NCLAT-00105. The appeal was filed by Flacon Tyres Ltd. against an order dated August 30, 2017, passed by…

- **Court:** NCLAT
- **Order date:** 9 Oct 2017
- **Citation:** TCN-2017-NCLAT-00105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/falcon-tyres-vs-belthangady-taluk-rubber-growers-marketing-processing-co-op-soci-a95413ca

## Summary

### Background

The appeal was filed by Flacon Tyres Ltd. against an order dated August 30, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench. The case number was I.A. No. 102/17 in CP (IB) No. 01/BB/17. The main contention was regarding the impleadment of an association of workmen under Section 9 of the Insolvency and Bankruptcy Code, 2016, which the appellant claimed was not permissible.

## Facts

Flacon Tyres Ltd. filed an appeal against the order passed by the Adjudicating Authority (NCLT), Bengaluru Bench, regarding the admission of an application under Section 9 of the Insolvency and Bankruptcy Code (I&B Code). The appellant argued that the impleadment of an association of workmen under Section 9 was not permissible. The Adjudicating Authority had already admitted the application under Section 9. The court observed that after the admission of the application for Corporate Insolvency Resolution, the association of workmen has no role to play except that their members individually may file claims with the Insolvency Resolution Professional.

## Issues and analysis

### Issue 1: Whether the impleadment of an association of workmen under Section 9 of the Insolvency and …

**Ratio:** The association of workmen has no role to play except their members, individually may

…

**Reasoning:** The court reasoned that after the admission of the application for initiation of

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**Interpretation:** This clarifies the role of associations of workmen in the CIRP process,

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**Application:** The association of workmen cannot act as a collective entity in the CIRP

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Flacon Tyre…
- **Respondents:** Belthangady Taluk…

## Timeline

- **2017-08-30 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench, passed an…
- **2017-10-09 — Appeal F…**: Flacon Tyres Ltd. preferred an appeal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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