# In the matter of R. G. Shaw & Sons Pvt. Ltd. & Anr. Vs. Naviplast Traders Pvt. Ltd. & Ors. CA (AT) No. 63-2017

> NCLAT judgment dated 2017-09-20. Citation: TCN-2017-NCLAT-00116. The appeal was filed against the order dated 12th April, 2017, passed by the National Company…

- **Court:** NCLAT
- **Order date:** 20 Sept 2017
- **Citation:** TCN-2017-NCLAT-00116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/r-g-shaw-sons-pvt-ltd-anr-vs-naviplast-traders-pvt-ltd-ors-ca-6acc41b0

## Summary

### Background

The appeal was filed against the order dated 12th April, 2017, passed by the National Company Law Tribunal (NCLT), Kolkata Bench, in Company Petition No. 186/2017. The NCLT had admitted an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) filed by the respondents (financial creditors), declared a moratorium, appointed an Insolvency Resolution Professional, and issued directions to proceed as per the I&B Code.

## Facts

M/s. R.G. Shaw & Sons Private Limited & Anr. filed an appeal against an order passed by the National Company Law Tribunal (NCLT), Kolkata Bench, in Company Petition No. 186/2017. The NCLT had admitted an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) filed by M/s. Naviplast Traders Private Limited & Ors. The appellant (corporate debtor) argued that the respondent (financial creditor) had suppressed the fact that they had initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881, due to dishonor of a cheque. The appellant also contended that the terms for repayment of the loan were to be renewed/restructured with effect from 31.3.17, so there was no default. The appellant further argued that

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## Issues and analysis

### Issue 1: Whether the initiation of proceedings under Section 138 of the Negotiable Instruments Act, 1881, …

**Ratio:** The initiation of proceedings under Section 138 of the Negotiable Instruments Act, 1881,

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**Reasoning:** The Adjudicating Authority correctly held that the proceedings under Section 138 of the

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**Interpretation:** Section 7 of the Insolvency & Bankruptcy Code, 2016, allows a financial

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**Application:** In this case, the appellant argued that the proceedings under Section 138 of

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Appellants:** M/s. R.G. Shaw &…
- **Respondents:** M/s. Naviplast…

## Timeline

- **2017-04-12 — Order by…**: National Company Law Tribunal (NCLT), Kolkata Bench, passed an order in Company Petition…
- **2017-09-20 — Order by…**: NCLAT dismissed the appeal against…

## 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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