# In the matter of Rakesh Kumar Gupta & Ors. vs. Straight Edge Contracts Pvt. Ltd. Through its RP & Ors

> NCLAT judgment dated 2023-08-28. Citation: TCN-2023-NCLAT-00249. The case involves multiple appeals against an order passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLAT-00249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rakesh-kumar-gupta-ors-vs-straight-edge-contracts-pvt-ltd-through-its-rp-ors-abcbdf29

## Summary

### Background

The case involves multiple appeals against an order passed by the National Company Law Tribunal (NCLT), Bench-IV, New Delhi. The NCLT order pertained to three applications: IA No. 2902/ND/2021 and IA No. 2482/ND/2022 filed by Orris Infrastructure Private Limited, which were partly accepted, and IA No. 1663/ND/2021 filed by Three C Universal Developers Pvt. Ltd., which was dismissed. The initial application, IB-2721/ND/2019, was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Straight Edge Contract Pvt. Ltd against Three C Shelters Pvt. Ltd. for the resolution of an amount of Rs. 29,95,91,034/- along with 24% interest. The NCLT initially allowed the Section 9 petition but later corrected typographical errors and uploaded the detailed order. During

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## Facts

Straight Edge Contracts Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Three C Shelters Pvt. Ltd. for the resolution of an amount of Rs. 29,95,91,034/- along with 24% interest. The Adjudicating Authority initially allowed the petition. During the pendency of the resolution process, Orris Infrastructure Private Limited filed IA No. 2902/ND/2021 and IA No. 2482/ND/2022, while Three C Universal Developers Pvt. Ltd. filed IA No. 1663/ND/2021. The Adjudicating Authority clubbed these applications and framed questions, including whether there was active collusion between Straight Edge Contracts Pvt. Ltd. and Three C Shelters Pvt. Ltd. in initiating CIRP proceedings. The Adjudicating Authority concluded that there was

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed a patent error in not recalling the order of admission …

**Ratio:** Fraud avoids all judicial acts, ecclesiastical or temporal. A judgment or decree obtained

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority misappreciated the law by not

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**Interpretation:** The legal issue concerns the Adjudicating Authority's power to recall its own

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**Application:** The ratio and reasoning apply to the specific facts of the case because the

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** Rakesh Kuma…
- **Respondents:** Three C Shelters…; STRAIGHT EDGE…

## Timeline

- **2022-03-29 — Order by…**: Order passed by the 'National Company Law Tribunal, Bench-IV, New Delhi, which is…
- **2020-07-20 — Initial H…**: The application was…

## 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)

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