# In the matter of Jagmeet Singh Sabharwal & Ors. Vs. Rubber Products Ltd. & Ors. CA(AT) (Insolvency) No. 405-2019

> NCLAT judgment dated 2019-06-11. Citation: TCN-2019-NCLAT-00509. This appeal was filed by Mr. Jagmeet Singh Sabharwal & Ors. (Successful Resolution Applicant)…

- **Court:** NCLAT
- **Order date:** 11 Jun 2019
- **Citation:** TCN-2019-NCLAT-00509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jagmeet-singh-sabharwal-ors-vs-rubber-products-ltd-ors-ca-97b80b78

## Summary

### Background

This appeal was filed by Mr. Jagmeet Singh Sabharwal & Ors. (Successful Resolution Applicant) against a part of the order dated 19th February, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The order pertained to M.A. No. 1039/2018 in C.P. (I.B.)-1686(MB)/2017, which approved the resolution plan submitted by the Appellant with certain modifications. The modifications included a restriction on the waiver of liabilities to only those government liabilities ascertained and crystallized as of the CIRP commencement date. The Appellant contested the addition of Rs. 14 Crores towards additional Government Dues.

## Facts

Mr. Jagmeet Singh Sabharwal & Ors. filed an appeal against the order of the Adjudicating Authority (NCLT), Mumbai Bench, which approved a resolution plan with modifications. The key facts are:
1. The resolution plan submitted by the Appellant was approved with modifications.
2. The modifications included restricting the waiver of liabilities to government liabilities ascertained and crystallized as of the CIRP commencement date.
3. The Appellant contested the addition of Rs. 14 Crores towards additional Government Dues, arguing it was not in the Information Memorandum.
4. The Adjudicating Authority held that the resolution applicant had a nexus with the 'Corporate Debtor'.
5. Fouress Engineering (India) Pvt. Ltd., also a shareholder of the 'Corporate Debtor', filed

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in modifying the resolution plan by adding Rs. 14 Crores …

**Ratio:** The ratio is based on the principle that claims should be presented before the Resolution

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**Reasoning:** The court reasoned that the claim of Rs. 14 Crores was not before the Resolution

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**Interpretation:** The interpretation is that the Adjudicating Authority should not arbitrarily

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**Application:** The ratio and reasoning were applied to the specific fact that the Rs. 14

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Jagmeet Singh…
- **Respondents:** Rubber Products…
- **Advocates:** Varsha Ba…; Sachindr…; +2 more

## Timeline

- **2019-02-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, passed an order…
- **2019-06-11 — Appeal F…**: Mr. Jagmeet Singh Sabharwal & Ors. filed an appeal against the part of the order dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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