# In the matter of Fortune Chemicals Limited vs. Ashok Kumar Jaiswal & Ors.

> NCLAT judgment dated 2025-01-06. Citation: TCN-2025-NCLAT-00284. The appeal was filed against the order dated 13.09.2022 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 6 Jan 2025
- **Citation:** TCN-2025-NCLAT-00284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/fortune-chemicals-limited-vs-ashok-kumar-jaiswal-ors-a26094c8

## Summary

### Background

The appeal was filed against the order dated 13.09.2022 passed by the National Company Law Tribunal, Kolkata Bench, Kolkata, in IA (I.B.C)/921(KB)2021 in C.P.(IB)/1470(KB)2018. The appellant had submitted a resolution plan in the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor, Aarya Industrial Products Private Limited. The application filed by the Appellant was dismissed by the NCLT.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Aarya Industrial Products Private Limited on 17.09.2019. Fortune Chemicals Limited submitted a resolution plan with an Earnest Money Deposit (EMD) of Rs. 25,00,000 on 19.02.2021. The Resolution Professional (RP) informed Fortune Chemicals Limited on 03.04.2021 that their resolution plan was rejected. The EMD was refunded to Fortune Chemicals Limited on 10.05.2021 upon their request. Fortune Chemicals Limited filed IA (I.B.C)/921(KB)2021 on 01.10.2021, which was dismissed by the NCLT on 13.09.2022. Fortune Chemicals Limited was the sole bidder in the CIRP. The RP stated that Fortune Chemicals Limited was ineligible under Section 29A of the IBC because Mr. Avanish Kumar Singh, a director in Fortune

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## Issues and analysis

### Issue 1: Whether the Appellant, Fortune Chemicals Limited, was eligible to submit a resolution plan under …

**Ratio:** Section 29A of the IBC disqualifies individuals or entities from submitting a resolution

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**Reasoning:** The NCLAT relied on the RP's submission that Mr. Avanish Kumar Singh, a director in

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**Interpretation:** Section 29A is interpreted strictly to prevent individuals or entities with a

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**Application:** The NCLAT applied the provisions of Section 29A to the facts of the case,

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## Parties

- **Judges:** Rakesh Kuma…; Ajai Das Me…
- **Appellants:** Fortune Chemicals…
- **Respondents:** Aarya Industrial…; Ashok Kumar…

## Timeline

- **2019-09-17 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Aarya Industrial…
- **2021-02-19 — Resolution Plan…**: Fortune Chemicals Limited submitted a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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