# In the matter of MSTC Limited & Ors. Vs. Adhunik Metalliks Ltd. & Ors. CA (AT) (Insolvency) No. 519-2018, 53 & 54-2019

> NCLAT judgment dated 2019-03-15. Citation: TCN-2019-NCLAT-00722. The case involves a challenge to an order by the Adjudicating Authority (National Company Law…

- **Court:** NCLAT
- **Order date:** 15 Mar 2019
- **Citation:** TCN-2019-NCLAT-00722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mstc-limited-ors-vs-adhunik-metalliks-ltd-ors-ca-31129673

## Summary

### Background

The case involves a challenge to an order by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, which approved a Resolution Plan submitted by Liberty House Group Pte. Ltd. for Adhunik Metalliks Ltd. under Section 31(1) of the Insolvency and Bankruptcy Code, 2016. The plan was approved by the Committee of Creditors with 99.94% voting shares. MSTC Limited's claim to treat additional expenses as Resolution Cost was rejected by the same order. Liberty House Group failed to pay the upfront amount within 57 days of the plan's approval. The Committee of Creditors alleged non-compliance and filed an application. Liberty House Group also sought directions to implement the plan and requested a stay on liquidation proceedings. The Adjudicating Authority

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## Facts

The 'Corporate Insolvency Resolution Process' was initiated against 'M/s. Adhunik Metalliks Ltd.' The Adjudicating Authority approved the ‘Resolution Plan' submitted by ‘Liberty House Group Pte. Ltd.”, which was approved by the ‘Committee of Creditors' with 99.94% voting shares. The claim of ‘MSTC Limited' to treat the additional expenses incurred by it as Resolution Cost was rejected. Liberty House Group failed to pay the upfront amount within 57 days of the approval of the ‘Resolution plan'. The ‘Committee of Creditors' alleged non-compliance of relevant terms in the ‘approved Resolution Plan' and filed an application before the Adjudicating Authority. The Adjudicating Authority refused to grant interim relief to the 'Liberty House Group' and asked as to why order of

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## Issues and analysis

### Issue 1: Whether the ‘Resolution Plan' is against …

**Ratio:** Section 6(1) of the Competition Act, 2002 deals with the regulation of combinations that

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**Reasoning:** The tribunal reasoned that the question of whether the ‘Resolution Plan' violates Section

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**Interpretation:** This issue involves interpreting the interplay between the Insolvency and

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**Application:** The tribunal applied the principle that the CCI is the appropriate authority to

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** MSTC Li…
- **Respondents:** Adhunik Metalliks…

## Timeline

- **2018-07-17 — Approval of Resolution…**: The Adjudicating Authority approved the ‘Resolution Plan' submitted by ‘Liberty House…
- **2018-12-12 — Rejection of Interim…**: The Adjudicating Authority refused to grant interim relief to the 'Liberty House Group'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 6(1) — Persons who may initiate corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-6)

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