# In the matter of One City Infrastructure Pvt. Ltd.
Vs.
Haryana Telecom Limited & Anr. Company Appeal (AT) (Insolvency) No. 1065 of 2021

> NCLAT judgment dated 2022-07-14. Citation: TCN-2022-NCLAT-00364. This case involves an appeal against an order dated 02.11.2021, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 14 Jul 2022
- **Citation:** TCN-2022-NCLAT-00364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/one-city-infrastructure-pvt-ltd-vs-haryana-telecom-limited-anr-company-appeal-063cf54c

## Summary

### Background

This case involves an appeal against an order dated 02.11.2021, passed by the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, regarding I.A. No. 728 of 2020 in C.P. No. 515/CHD/2019. The appeal arises from insolvency proceedings initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016 against One City Infrastructure Pvt. Ltd. The appellant challenges the inclusion of Haryana Telecom Limited (Respondent No. 2), a financial creditor, in the Committee of Creditors (CoC), arguing that it is a related party to the corporate debtor. The appellant contends that Sunaina Singh, a director in the financial creditor, was also previously a director in the corporate debtor and is related to Sita Chaudhary, who is also a director in the

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## Facts

One City Infrastructure Pvt. Ltd. faced insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. Haryana Telecom Limited, a financial creditor holding 5,50,000 non-convertible debentures of Rs.100 each with a 12% interest rate, filed an application to initiate CIRP against One City Infrastructure. The due date for redemption was 31.12.2015, later extended to 31.12.2020. The Adjudicating Authority admitted the application on 07.12.2020 and appointed Shri Sanyam Goel as the Interim Resolution Professional (IRP), later approved as the Resolution Professional (RP). The RP invited claims, receiving 15 claims from creditors. The Committee of Creditors (CoC) was constituted with Haryana Telecom Limited as the sole member. The Resolution Professional

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## Issues and analysis

### Issue 1: Whether Haryana Telecom Limited, the financial creditor, is a 'related party' to One City …

**Ratio:** The ratio decidendi, derived from the Supreme Court's judgment in 'Phoenix ARC Private

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**Reasoning:** The NCLAT reasoned that Sunaina Singh's resignation from the corporate debtor on

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**Interpretation:** The interpretation of Section 5(24) and Section 21(2) of the I&B Code,

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**Application:** In this case, the NCLAT applied the ratio and reasoning to the specific facts,

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## Parties

- **Judges:** Ashok Bh…; Naresh Sa…
- **Respondents:** One City Infrastru…; Haryana Telecom…
- **Advocates:** Krishnendu…; Nitin P…; +6 more

## Timeline

- **2015-12-31 — Due Date of Re…**: Original due date for redemption…
- **2019-01-01 — Letter for Re…**: Sunaina Singh, as Director of the Financial Creditor, addressed a letter to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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