# In the matter of Kanoria Chemical & Industries Ltd. vs. Vijendra Kumar Jain & Ors. I.A. No. 1647 of 2021 in Company Appeal (AT) (Ins) No. 618 of 2021

> NCLAT judgment dated 2023-04-11. Citation: TCN-2023-NCLAT-00630. Kanoria Chemical Industries Ltd. filed an appeal under Section 61 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 11 Apr 2023
- **Citation:** TCN-2023-NCLAT-00630
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kanoria-chemical-industries-ltd-vs-vijendra-kumar-jain-ors-ia-no-1647-of-2021-in-f1cbb894

## Summary

### Background

Kanoria Chemical Industries Ltd. filed an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging an order dated 16.4.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in IA No. 07/MB/2021 in CP (IB)No. 3448/MB/2018. The Adjudicating Authority had approved a Resolution Plan under section 30(4) of the IBC for the corporate debtor, Transparent Energy System Pvt. Ltd. The appellant, an operational creditor, claimed that its arbitral award was not considered appropriately in the resolution plan. The corporate debtor was admitted into CIRP on 8.3.2019, following an application under section 9 of the IBC.

## Facts

Kanoria Chemical Industries Ltd. (KCIL) initiated arbitration against Transparent Energy System Pvt. Ltd. (TESPL) on November 11, 2002, regarding a dispute over the supply of Multi Stage Evaporators. An arbitral award of Rs. 668 Lacs plus future interest was issued in favor of KCIL in May 2015. TESPL challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996. TESPL was admitted into Corporate Insolvency Resolution Process (CIRP) on March 8, 2019, following an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). KCIL filed its claim in Form B on June 3, 2019, disclosing the arbitral award and the pending execution application. The Interim Resolution Professional (IRP) initially admitted KCIL's claim to the extent of Rs.

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## Issues and analysis

### Issue 1: Whether the treatment of the claim of the Appellant filed in pursuance of the arbitral award was …

**Ratio:** Equitable treatment should be meted out to financial and operational creditors in the

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**Reasoning:** The tribunal found that the resolution plan unfairly categorized the appellant and

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**Interpretation:** The principle of equitable treatment requires that creditors with similar legal

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**Application:** The tribunal held that the appellant was incorrectly classified as an

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Kanoria Chemical…
- **Respondents:** Transparent…; Transparent…; +1 more

## Timeline

- **2002-11-11 — Arbitration I…**: Kanoria Chemicals and Industries Ltd. (KCIL) initiated arbitration against Transparent…
- **2015-05-01 — Arbitral…**: An arbitral award of Rs. 668 Lacs plus…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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