# In the matter of John Cockerill India Limited
Vs. JSW Steel Coated Products Limited & Anr. Company Appeal (AT) (Insolvency) No. 189 of 2021

> NCLAT judgment dated 2022-09-14. Citation: TCN-2022-NCLAT-00220. The case involves an appeal against an order approving a Resolution Plan under the Insolvency…

- **Court:** NCLAT
- **Order date:** 14 Sept 2022
- **Citation:** TCN-2022-NCLAT-00220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/john-cockerill-india-limited-vs-jsw-steel-coated-products-limited-anr-company-ap-aadf9766

## Summary

### Background

The case involves an appeal against an order approving a Resolution Plan under the Insolvency and Bankruptcy Code (IBC). The Appellant, an Operational Creditor of the Corporate Debtor (Asian Color Coated Ispat Ltd.), challenged the inclusion of a mortgaged property in the Resolution Plan. The property was mortgaged by the Ex-Director of the Corporate Debtor, Mr. Pradeep Agarwal, to secure the repayment of dues to the Appellant. The Appellant argued that the personal property of the Ex-Director should not be part of the Resolution Plan as it is not an asset of the Corporate Debtor. The Resolution Plan was approved by the Adjudicating Authority, leading to this appeal.

## Facts

The Appellant, CMI FPE Limited, is an Operational Creditor of the Corporate Debtor, Asian Color Coated Ispat Ltd. The Appellant and Corporate Debtor entered into four contracts in 2009 and 2010. The Corporate Debtor defaulted on payments, with outstanding amounts totaling Rs.21,89,16,893.57. A settlement was attempted with the Corporate Debtor issuing 12 postdated cheques amounting to Rs.6 Crores, but these were dishonored. The Appellant initiated proceedings under Section 138 of the Negotiable Instrument Act, 1881. A Demand Notice was issued under Section 8 of IBC for initiation of CIRP. Another settlement was attempted, with the Corporate Debtor assuring repayment of Rs.18,65,75,394 by 30.09.2019. Mr. Pradeep Agarwal, the then Promotor of the Corporate Debtor,

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## Issues and analysis

### Issue 1: Whether the personal property of the Ex-Director of the Corporate Debtor, mortgaged to the …

**Ratio:** The ratio is based on the principle that the Resolution Plan can only deal with the

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**Reasoning:** The court reasoned that the personal property of the Ex-Director is not reflected in the

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**Interpretation:** The interpretation is that the IBC framework does not allow for the inclusion

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**Application:** In this case, the mortgaged property belonged to the Ex-Director, Mr. Pradeep

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## Parties

- **Judges:** Anant Bijay…; Shreesha…; +1 more
- **Appellants:** John Cockerill…
- **Respondents:** Asian Color…; JSW Steel Coated…
- **Advocates:** Abhishek…; Harshita A…; +7 more

## Timeline

- **2009-12-24 — Contract…**: One of the four contracts between the…
- **2010-05-25 — Contract…**: One of the four contracts between the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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