# In the matter of Reliance India Power Fund Vs. Mr. Raj Kumar Ralhan CA(AT)(Ins) No. 318 of 2020

> NCLAT judgment dated 2020-02-24. Citation: TCN-2020-NCLAT-00381. This is an appeal against an Impugned Order dated 11th February, 2020, passed by the National…

- **Court:** NCLAT
- **Order date:** 24 Feb 2020
- **Citation:** TCN-2020-NCLAT-00381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/reliance-india-power-fund-vs-mr-raj-kumar-ralhan-ca-cf606e48

## Summary

### Background

This is an appeal against an Impugned Order dated 11th February, 2020, passed by the National Company Law Tribunal, Principal Bench, New Delhi, in a case related to the Corporate Debtor, Su Kam Power Systems Ltd., which is undergoing liquidation proceedings. The Appellant had initiated arbitration proceedings against the Corporate Debtor before the CIRP started, but these proceedings were affected by the moratorium imposed when the CIRP commenced. After the liquidation order was passed, the Appellant wanted to continue with the arbitration, but the Liquidator only made one appearance and informed the Arbitrators about the liquidation proceedings, after which they did not participate, leading to the arbitration proceedings being struck.

## Facts

Reliance India Power Fund, Reliance Capital Trustee Company Limited, filed an appeal against an order dated 11.02.2020 passed by the National Company Law Tribunal (NCLT). The corporate debtor, Su Kam Power Systems Ltd., is undergoing liquidation. Before the CIRP commenced, the appellant had initiated arbitration proceedings against the corporate debtor. These proceedings were affected by the moratorium imposed during the CIRP. After the liquidation order, the appellant wanted to proceed with arbitration, but the liquidator only appeared once and then ceased participation, leading to the arbitration proceedings being struck. The appellant argues that the liquidator is obligated to defend the arbitration under Section 35(k) of the IBC. The liquidator argues that the

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## Issues and analysis

### Issue 1: Whether the Liquidator is obligated to defend the arbitration proceedings initiated by the …

**Ratio:** The duty cast on the Liquidator is to institute or defend any Suit, prosecution or other

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**Reasoning:** The court reasoned that the Liquidator has the discretion to decide whether to defend a

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**Interpretation:** Section 35(k) of the Insolvency and Bankruptcy Code, 2016, grants the

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**Application:** In this case, the Liquidator determined that the arbitration proceedings

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## Parties

- **Judges:** A.I.S. C…; A.B. S…; +1 more
- **Appellants:** Reliance India…
- **Respondents:** SU KAM POWER…; Raj Kumar…

## Timeline

- **2020-02-11 — Impugned…**: Order passed by National Company Law Tribunal, Principal Bench, New Delhi in CP (IB)-540…
- **2020-02-24 — Appeal He…**: Counsel for Appellant heard.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(k) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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