# In the matter of Ms Dynepro Private Limited Vs. Mr. V. Nagarajan CA(AT)(Insolvency) 229,262-2018

> NCLAT judgment dated 2019-01-30. Citation: TCN-2019-NCLAT-00826. The case involves two company appeals (229/2018 and 262/2018) arising from orders passed by…

- **Court:** NCLAT
- **Order date:** 30 Jan 2019
- **Citation:** TCN-2019-NCLAT-00826
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-dynepro-private-limited-vs-mr-v-nagarajan-ca-ac9ee75a

## Summary

### Background

The case involves two company appeals (229/2018 and 262/2018) arising from orders passed by the Adjudicating Authority (National Company Law Tribunal), Chennai, in CP/511/IB/2017. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Cethar Limited, with Mr. V. Nagarajan appointed as the Resolution Professional. M/s Dynepro Private Limited (Appellant in Appeal 229/2018) filed CA/65/IB/2018 seeking the release of materials received by the Corporate Debtor and restraint of the Resolution Professional. M/s IU International Holdings PTE Ltd. (Appellant in Appeal 262/2018) filed CA/127/2018 seeking custody of materials supplied to the Corporate Debtor. Both applications were rejected by the Adjudicating Authority.

## Facts

A Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Cethar Limited, with Mr. V. Nagarajan appointed as the Resolution Professional. M/s Dynepro Private Limited filed an application (CA/65/IB/2018) seeking the release of materials received by the Corporate Debtor, supported by an Inward Inspection Certificate dated 05.05.2017. They claimed the materials belonged to them and were sent to M/s Cethar Ltd. for job work. M/s IU International Holdings PTE Ltd. filed another application (CA/127/2018) seeking custody of materials supplied to the Corporate Debtor, claiming they supplied the material to M/s GB Engineering Enterprises Ltd., who in turn supplied it to M/s Dynepro Pvt. Ltd., who then supplied steel plates to M/s Cethar Ltd. The materials were

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to decide claims and counterclaims …

**Ratio:** The Corporate Insolvency Resolution Process is not a money claim nor a suit or a

…

**Reasoning:** The NCLAT reasoned that the CIRP is designed for resolution and liquidation, not for

…

**Interpretation:** Section 60(5) of the IBC empowers the NCLT to entertain or dispose of any

…

**Application:** In this case, the dispute over the ownership of the materials held by M/s

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** M/s Dynepro…
- **Respondents:** M/s Cethar…; V. Naga…

## Timeline

- **2017-04-11 — Purchase Ord…**: M/s IU International Holdings PTE Ltd. made purchase order with ‘M/s G. B. Engineering…
- **2017-04-18 — Work Orde…**: ‘M/s G. B. Engineering Enterprises Ltd.' released work order dated 18th April, 2017 in…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ms-dynepro-private-limited-vs-mr-v-nagarajan-ca-ac9ee75a