# In the matter of Gururaj S Kulkakarni & Ors. vs. Gujarat NRE Coke Ltd.
In Liquidation Through Liquidator Mr. Sumit Binani CA(AT)(Ins)Nos. 985-986 of 2020

> NCLAT judgment dated 2020-11-19. Citation: TCN-2020-NCLAT-00042. The appeal challenges the order dated June 9, 2020, which dismissed the application by…

- **Court:** NCLAT
- **Order date:** 19 Nov 2020
- **Citation:** TCN-2020-NCLAT-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gururaj-s-kulkakarni-ors-vs-gujarat-nre-coke-ltd-in-liquidation-through-liquidat-ddb83ce9

## Summary

### Background

The appeal challenges the order dated June 9, 2020, which dismissed the application by representatives of the employees of Gujarat NRE Coke Limited (Corporate Debtor) to reconsider the Scheme of Compromise and Arrangement under Section 230 of the Companies Act, 2013. The scheme, proposed by the Shareholders along with the 'TEV Study', was not considered by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench. The appellants argued that the Adjudicating Authority did not consider the proposition that liquidation should be the last resort and all efforts should be made to revive the Company.

## Facts

The representatives of the employees of Gujarat NRE Coke Limited (Corporate Debtor) filed an application to reconsider the Scheme of Compromise and Arrangement under Section 230 of the Companies Act, 2013. The scheme was proposed by the Shareholders along with the 'TEV Study'. The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, dismissed the application. The Corporate Debtor has been under liquidation since January 11, 2018. The Scheme of Compromise and Arrangement for revival of the Corporate Debtor was rejected by the secured creditors. The creditors objected to the addition of 'TEV Study'. The 90-day limit from the date of the order of liquidation had elapsed, and more than two years had passed.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in dismissing the application for reconsideration …

**Ratio:** The Adjudicating Authority has the discretion to dismiss an application for

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**Reasoning:** The court reasoned that the 90-day limit from the date of the order of liquidation had

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**Interpretation:** The interpretation is that the Adjudicating Authority is not obligated to

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**Application:** The court applied this ratio to the facts by noting that the 90-day limit had

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Gururaj S…
- **Respondents:** Gujarat NRE Coke…; Gujarat NRE Coke…
- **Advocates:** Jayant…; Dhruv Dev…; +4 more

## Timeline

- **2018-01-11 — Corporate Debtor under…**: The Corporate Debtor, Gujarat NRE…
- **2020-06-09 — Impugned…**: The Adjudicating Authority dismissed the application of the representatives of the…

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