# In the matter of Laxmichand Bansidhar, Forbesganj Vs. Juggilal Kamlapat Jute Mills Company Ltd (now known as Geo Jute Ltd) CA (AT) Nos. 190 & 191-2018

> NCLAT judgment dated 2018-05-07. Citation: TCN-2018-NCLAT-00302. These are appeals preferred by the Appellants, who claimed to be ‘Operational Creditors'…

- **Court:** NCLAT
- **Order date:** 7 May 2018
- **Citation:** TCN-2018-NCLAT-00302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/laxmichand-bansidhar-forbesganj-vs-juggilal-kamlapat-jute-mills-company-ltd-02506cd1

## Summary

### Background

These are appeals preferred by the Appellants, who claimed to be ‘Operational Creditors' against the order(s) dated 10th April, 2018, whereby and whereunder the Adjudicating Authority (National Company Law Tribunal) rejected the application preferred by the Appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Appellants, claiming to be Operational Creditors, filed appeals against the order(s) dated 10th April, 2018, passed by the Adjudicating Authority (National Company Law Tribunal). The Adjudicating Authority had rejected the application preferred by the Appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Appellants presented marginal bills and certificates from company secretaries as evidence of debt. The Adjudicating Authority held that these marginal bills of the 'Corporate Debtor' cannot be treated as evidence of debt of the Appellants. There was a dispute as to whether any debt is payable by the Respondents to the Appellants. A civil suit (No. 500/2017) is pending on some of the common issues.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority rightly rejected the application preferred by the Appellant …

**Ratio:** The Adjudicating Authority can reject an application under Section 9 of the Insolvency

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**Reasoning:** The court reasoned that the Adjudicating Authority rightly rejected the applications

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational

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**Application:** The court applied the ratio to the facts by noting that the Appellants only

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Laxmichand…
- **Respondents:** Juggilal Kamlapat…; M/s Juggilal…
- **Advocates:** Pradeep Ag…; Udit M…; +2 more

## Timeline

- **2018-04-10 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) rejected the application…
- **2018-05-07 — Appeals Pre…**: The Appellants, claiming to be ‘Operational Creditors', preferred appeals against the…

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