# In the matter of Loramitra Rath vs. JM Financial Asset Reconstruction Company Ltd. & Ors.

> NCLAT judgment dated 2023-11-01. Citation: TCN-2023-NCLAT-00106. The appeal arises from two orders dated 25.09.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLAT-00106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/loramitra-rath-vs-jm-financial-asset-reconstruction-company-ltd-ors-0f0509c0

## Summary

### Background

The appeal arises from two orders dated 25.09.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Cuttack). The first order rejected an IA filed by the Appellant, and the second order admitted a Section 7 application filed by JM Financial Asset Reconstruction Company Limited (Respondent No. 1) initiating Corporate Insolvency Resolution Process (CIRP) against Maa Durga Commotrade Private Limited (Corporate Debtor). The suspended director of the Corporate Debtor filed the present appeal challenging both orders.

## Facts

Maa Durga Commotrade Pvt. Ltd. (Corporate Debtor) obtained credit facility of Rs.1 crore from Karnataka Bank Limited (KBL) in 2010. The loan account was classified as NPA on 05.07.2013 due to non-repayment. KBL sent a SARFAESI notice on 29.08.2013, and the Corporate Debtor replied on 06.09.2013. KBL assigned the debt to JM Financial Asset Reconstruction Company Ltd. (Respondent No.1) on 15.12.2014. The Corporate Debtor submitted an OTS proposal on 21.10.2016, which was approved but later revoked due to non-payment. Respondent No.1 filed a Section 7 petition under IBC. The Adjudicating Authority reserved orders on 07.08.2023 and pronounced them on 25.09.2023. The Corporate Debtor filed IA No. 253/CB/2023 seeking recall of the order, which was dismissed. The Adjudicating

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in …

**Ratio:** Subsequent pleadings filed after the judgment is reserved are normally not entertained

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**Reasoning:** The Adjudicating Authority applied the settled position of law that when a matter is

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**Interpretation:** The court interpreted the procedural rules regarding the filing of applications

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Loramitra…
- **Respondents:** Maa Durga…; JM Financial…

## Timeline

- **2010-01-01 — Credit Fa…**: Maa Durga Commotrade Pvt. Ltd. obtained credit facility of Rs.1 crore from Karnataka Bank…
- **2013-07-05 — NPA Classif…**: The loan account was classified…

## 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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