# In the matter of Mahesh Paricharak vs. Indian Overseas Bank

> NCLAT judgment dated 2023-08-29. Citation: TCN-2023-NCLAT-00241. The appeal was filed by the suspended board of directors of the Corporate Debtor, M/s Utopian…

- **Court:** NCLAT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLAT-00241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mahesh-paricharak-vs-indian-overseas-bank-6d75c179

## Summary

### Background

The appeal was filed by the suspended board of directors of the Corporate Debtor, M/s Utopian Sugars Limited, challenging the order dated 16.12.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court II). The Adjudicating Authority admitted the application filed by Indian Overseas Bank (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for the resolution of an aggregate amount of Rs. 23,16,19,975/-. The Corporate Debtor argued that the Adjudicating Authority erred in recording that the Corporate Debtor failed to appear on multiple occasions despite notice, which was contrary to the record. During the pendency of the appeal, Union Bank of India filed an application for intervention, claiming to be a

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## Facts

Indian Overseas Bank (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Utopian Sugars Limited (Corporate Debtor) for the resolution of an aggregate amount of Rs. 23,16,19,975/-, including a principal amount of Rs. 17,81,96,000/- and interest of Rs. 5,34,23,975/-. The Adjudicating Authority admitted the application on 16.12.2022. The Corporate Debtor challenged the admission order, arguing that it was passed behind their back as no service was effected upon them. The Corporate Debtor claimed that the Adjudicating Authority erred in recording that the Corporate Debtor failed to appear on multiple occasions despite notice. The notice for the first time was issued by the Adjudicating Authority on 11.10.2022

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority correctly recorded the Corporate Debtor's absence on multiple …

**Ratio:** The Adjudicating Authority's observation that the Corporate Debtor failed to appear on

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**Reasoning:** The notice for the first time was issued by the Adjudicating Authority on 11.10.2022 for

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**Interpretation:** The Adjudicating Authority must accurately record the presence or absence of

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**Application:** In this case, the Adjudicating Authority's inaccurate recording of the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Mahesh Pari…
- **Respondents:** Utopian Sugars…; Indian Overseas…

## Timeline

- **2022-12-16 — Order by Adjudicating…**: The Adjudicating Authority admitted the application filed by Indian Overseas Bank under…
- **2022-12-22 — Appeal F…**: The appeal was filed by the suspended board of directors of the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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