# M/s. Innoventive Industries Ltd. vs. ICICI Bank & Anr.

> NCLAT judgment dated 2017-05-15. Citation: TCN-2017-NCLAT-00186. M/s. Innoventive Industries Limited (Appellant/Corporate Debtor) filed appeals against two…

- **Court:** NCLAT
- **Order date:** 15 May 2017
- **Citation:** TCN-2017-NCLAT-00186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-innoventive-industries-ltd-vs-icici-bank-anr-kzkm8kno

## Summary

### Background

M/s. Innoventive Industries Limited (Appellant/Corporate Debtor) filed appeals against two orders dated 17th January 2017 and 23rd January 2017 passed by the National Company Law Tribunal (NCLT), Mumbai Bench. These orders admitted an application filed by the financial creditor, ICICI Bank (Respondent herein), under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code, 2016), declaring a moratorium and appointing an Interim Resolution Professional. The Appellant challenged these orders on grounds of natural justice (lack of prior notice/hearing), the applicability of the Maharashtra Relief Undertaking (Special Provisions) Act, 1958 (MRU Act, 1958), and the alleged requirement for prior consent from the Joint Lender Forum (JLF).

## Facts

The National Company Law Tribunal (NCLT), Mumbai Bench, passed orders on 17th January 2017 and 23rd January 2017.

These NCLT orders admitted an application by ICICI Bank (financial creditor) against M/s. Innoventive Industries Ltd. (corporate debtor) under Section 7 of the I&B Code, 2016.

The NCLT orders declared a 'moratorium' and appointed an 'Interim Resolution Professional'.

M/s. Innoventive Industries Ltd. challenged the NCLT orders on the ground that they were passed without notice to the Appellant, violating principles of natural justice (Section 424 of Companies Act, 2013).

The Appellant contended that the Maharashtra Relief Undertaking (Special Provisions) Act, 1958 (MRU Act, 1958), should prevail over the I&B Code, 2016.

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## Issues and analysis

### Issue 1: Whether a notice is required to be given to the Corporate Debtor for initiation of Corporate …

**Ratio:** The Adjudicating Authority (NCLT/NCLAT) is bound to be guided by the principles of

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**Reasoning:** Section 424 of the Companies Act, 2013, as amended by the I&B Code, 2016, explicitly

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**Interpretation:** While Section 7 of the I&B Code does not explicitly mandate a prior notice

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**Application:** In the present case, despite no formal notice being issued before admission of

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Appellants:** M/S. INNOVENTIVE…
- **Respondents:** M/s. Innoventive…; ICICI…; +1 more
- **Other parties:** RL3M9ZXOBmgojsXrsj…
- **Advocates:** Amarendra…; Makarand D.…; +13 more

## Timeline

- **2017-01-17 — NCLT Orde…**: National Company Law Tribunal, Mumbai Bench, passed an order admitting the application of…
- **2017-01-23 — NCLT Orde…**: National Company Law Tribunal, Mumbai Bench, passed another order (or clarification),…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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