# In the matter of Kalyan Dombivali Municipal corporation vs. NRC Limited & Ors. CA (AT) (Ins) No. 223 of 2021]

> NCLAT judgment dated 2022-12-20. Citation: TCN-2022-NCLAT-00013. The appeal challenges the Adjudicating Authority's order dated 2020-03-13, which approved a…

- **Court:** NCLAT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLAT-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kalyan-dombivali-municipal-corporation-vs-nrc-limited-ors-ca-165729b6

## Summary

### Background

The appeal challenges the Adjudicating Authority's order dated 2020-03-13, which approved a resolution plan for the Corporate Debtor, NRC Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against NRC Limited on 2018-11-27. The resolution plan, submitted by Adani Properties Private Limited, was approved by the Committee of Creditors (CoC) with a 99.88% vote share. The Appellant, Kalyan Dombivali Municipal Corporation, claims that the RP was aware of the property tax litigation between the Appellant and the Corporate Debtor but did not include it in the information memorandum. The Appellant argues that the resolution plan should not have been approved due to this omission.

## Facts

The Kalyan Dombivali Municipal Corporation (Appellant) challenged an order approving a resolution plan for NRC Limited (Corporate Debtor). The CIRP was initiated on 2018-11-27. The Appellant had served a demand notice to the Corporate Debtor on 1996-01-17 regarding property tax. The Corporate Debtor challenged this demand, leading to various legal proceedings, including municipal suits and writ petitions. The Supreme Court directed the Corporate Debtor to deposit a sum of Rs. 4.5 Crores towards property tax. The Appellant claims that the RP was aware of the ongoing property tax litigation but did not include it in the information memorandum. The RP made a public announcement on 2018-12-07 inviting claims from creditors and sent a letter to the Appellant on 2018-12-11

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## Issues and analysis

### Issue 1: Whether the resolution plan's approval was valid despite the Appellant's claim not being included …

**Ratio:** The ratio is based on the principle that claims not submitted to the RP and not part of

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**Reasoning:** The court reasoned that the Appellant was informed of the CIRP proceedings and had the

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**Interpretation:** The interpretation is that the statutory requirement to file claims during the

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**Application:** The ratio and reasoning apply to the specific facts because the Appellant, a

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## Parties

- **Judges:** Rakesh Kuma…; KanthiNar…
- **Appellants:** Kalyan Dombivali…
- **Respondents:** NRC Lim…

## Timeline

- **1996-01-17 — Demand N…**: Appellant served demand notice to…
- **1996-01-22 — Objection…**: Respondent No. 1 challenged the…

## 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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