# In the matter of Kundan Care Products Ltd. Vs. Amit Jain and Anr. CA(AT)(Insolvency)No. 793-794 of 2020

> NCLAT judgment dated 2020-09-14. Citation: TCN-2020-NCLAT-00121. The case involves two appeals, Company Appeal (AT) (Insolvency) No. 793 of 2020 and Company…

- **Court:** NCLAT
- **Order date:** 14 Sept 2020
- **Citation:** TCN-2020-NCLAT-00121
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kundan-care-products-ltd-vs-amit-jain-and-anr-ca-702a2171

## Summary

### Background

The case involves two appeals, Company Appeal (AT) (Insolvency) No. 793 of 2020 and Company Appeal (AT) (Insolvency) No. 794 of 2020, concerning Kundan Care Products Ltd. The Committee of Creditors (CoC) had not yet examined the Resolution Plans. The appeals arose because the Adjudicating Authority passed orders on August 7th and 20th, 2020, after the CoC had opened and discussed two plans, including the Appellant's plan, on August 4th, 2020. The issue raised in Company Appeal (AT) (Insolvency) No. 794 of 2020 relates to the fairness and transparency of the bidding process within the Corporate Insolvency Resolution Process (CIRP).

## Facts

Kundan Care Products Ltd. filed appeals against Amit Jain and Anr. The Committee of Creditors (CoC) had not yet examined the Resolution Plans. The Adjudicating Authority passed orders on August 7th and 20th, 2020. Prior to these orders, the CoC had opened and discussed two plans, including the Appellant's plan, on August 4th, 2020. The appeals concern the fairness and transparency of the bidding process within the Corporate Insolvency Resolution Process (CIRP). The Appellant had no pending application under Section 60(5) of the I&B Code before the Adjudicating Authority. The key fact is that the CoC's actions and the subsequent orders of the Adjudicating Authority potentially impacted the fairness of the bidding process, leading to the appeals.

## Issues and analysis

### Issue 1: Whether the fairness and transparency of the bidding process in the Corporate Insolvency Resolution …

**Ratio:** The legal principle is that objections regarding the fairness and transparency of the

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**Reasoning:** The court reasoned that since the Committee of Creditors had not yet examined the

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**Interpretation:** This interpretation allows for challenges to the bidding process to be

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**Application:** The court applied this principle by disposing of the appeals but granting the

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## Parties

- **Judges:** Bansi Lal…; Jarat Kuma…; +1 more
- **Appellants:** Kundan Care…
- **Respondents:** Amit…

## Timeline

- **2020-08-04 — Committee of Creditors…**: The Committee of Creditors opened and discussed two resolution plans, including that of…
- **2020-08-07 — Adjudicating Authority…**: The Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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