# In the matter of JK Jute Mills Mazdoor Morcha vs. Kaledonia Jute and Fibres Pvt. Ltd. & Anr.

> NCLAT judgment dated 2024-01-11. Citation: TCN-2024-NCLAT-00692. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLAT-00692
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jk-jute-mills-mazdoor-morcha-vs-kaledonia-jute-and-fibres-pvt-ltd-anr-134baced

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), Allahabad Bench, Prayagraj, which dismissed an I.A. filed by the Appellant. The Appellant sought a declaration that the initiation of CIRP was fraudulent. The appeal was heard on 23.11.2023, and the court considered the submission that the Supreme Court had ordered the transfer of winding-up proceedings from the Allahabad High Court to the NCLT to be heard along with the Section 7 application. The Section 7 application had already been disposed of, but details of the winding-up proceedings were not available in the public domain. The court permitted the Appellant to apply to the Registry of NCLT, Allahabad Bench, for a copy of the winding-up petition

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## Facts

JK Jute Mills Mazdoor Morcha filed an appeal against an order by the Adjudicating Authority (NCLT, Allahabad Bench) that dismissed their I.A. seeking declaration of CIRP initiation as fraudulent. The appellant argued that a Supreme Court order dated 19.11.2020 directed the transfer of winding-up proceedings from Allahabad High Court to NCLT to be heard with a Section 7 application. The Section 7 application was already disposed of on 03.02.2022. The appellant sought details of the winding-up proceedings, which were not publicly available. The Allahabad High Court transferred Company Petition No.24 of 2015 to NCLT, Allahabad Bench. The winding-up petition transferred from the Allahabad High Court is still pending.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dismissing the Appellant's I.A. seeking declaration of …

**Ratio:** The court did not explicitly rule on the validity of the Adjudicating Authority's order.

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**Reasoning:** The court did not express any opinion on the merits of the claim regarding the fraudulent

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**Interpretation:** The court's approach suggests a preference for resolving the underlying issues

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**Application:** The court's decision to dispose of the appeal without expressing an opinion on

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** J.K. Jute Mills…
- **Respondents:** Kaledonia Jute…

## Timeline

- **2020-11-19 — Supreme Cour…**: The Supreme Court passed an order in “Kaledonia Jute and Fibres (P) Ltd. vs. Axis Nirman…
- **2022-02-03 — Disposal of Section 7…**: The Section 7 application was disposed of by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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