# In the matter of Kalinga Allied Industries India Pvt. Ltd. Vs. Hindustan Coils Ltd. and Ors. CA (AT) (Ins) No. 518 of 2020

> NCLAT judgment dated 2021-01-11. Citation: TCN-2021-NCLAT-00416. Kalinga Allied Industries India Pvt. Ltd. filed an appeal against the order dated 27.02.2020…

- **Court:** NCLAT
- **Order date:** 11 Jan 2021
- **Citation:** TCN-2021-NCLAT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kalinga-allied-industries-india-pvt-ltd-vs-hindustan-coils-ltd-and-ors-ca-a9ab79b6

## Summary

### Background

Kalinga Allied Industries India Pvt. Ltd. filed an appeal against the order dated 27.02.2020 passed by the Adjudicating Authority (National Company Law Tribunal) Special Bench, New Delhi, which allowed Interlocutory Application No. 1513 (PB) of 2020 filed by Hindustan Coils Ltd. (respondent No. 1). The Adjudicating Authority directed that the application along with the proposed plan of respondent No. 1 be placed before the committee of creditors (COC) for consideration. The Appellant had submitted a Resolution Plan in time pursuant to the expression of interest issued by RP on 24.08.2018. After several rounds of deliberations by the COC, the revised Resolution Plan was submitted by the Appellant on 19.12.2018 and approved by the COC by requisite majority in the 13th

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## Facts

Kalinga Allied Industries India Pvt. Ltd. (Appellant) initiated an appeal against an order by the Adjudicating Authority (NCLT) that directed the Committee of Creditors (COC) to consider a resolution plan submitted by Hindustan Coils Ltd. (Respondent No. 1), even though Hindustan Coils Ltd. was not part of the initial CIRP process. The Appellant had previously submitted a resolution plan that was approved by the COC on 28.12.2018. The Resolution Professional (RP) then filed an application for approval of the Appellant's plan. Respondent No. 1 submitted its resolution plan later, offering a higher amount. The Adjudicating Authority directed the COC to consider Respondent No. 1's plan, leading to the Appellant's appeal. Kalinga Enterprises Ltd. (KEL), a related party to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can direct the COC to consider the Resolution Plan of a person …

**Ratio:** The Adjudicating Authority has a limited power of judicial scrutiny under Section 31 of

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**Reasoning:** The Tribunal reasoned that allowing the Adjudicating Authority to direct the COC to

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**Interpretation:** This issue concerns the extent of the Adjudicating Authority's powers under the

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**Application:** In this case, the Adjudicating Authority directed the COC to consider the

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## Parties

- **Judges:** Jarat Kuma…; Bansi Lal…; +1 more
- **Appellants:** Kalinga Allied…
- **Respondents:** Hindustan Coils…

## Timeline

- **2018-08-24 — Expression of…**: RP issued expression of…
- **2018-12-19 — Submission of Revised…**: Appellant submitted revised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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