# In the matter of State of Rajasthan & Ors. Arunava Sikdar & Ors. Company Appeal (AT) (Insolvency) No. 733, 734 & 996 of 2022

> NCLAT judgment dated 2023-02-21. Citation: TCN-2023-NCLAT-00709. The State of Rajasthan filed three appeals challenging the order dated 24.06.2022 passed by…

- **Court:** NCLAT
- **Order date:** 21 Feb 2023
- **Citation:** TCN-2023-NCLAT-00709
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-of-rajasthan-ors-arunava-sikdar-ors-company-appeal-at-insolvency-no-733-73-1a91d608

## Summary

### Background

The State of Rajasthan filed three appeals challenging the order dated 24.06.2022 passed by the National Company Law Tribunal (NCLT), Jaipur Bench, in IA No.327/JPR/2019, IA No.328/JPR/2019 and IA No.301/JPR/2019, all related to CP No.(IB) 54(PB)/2018. The appeals concern the admission of claims by Alchemist Asset Reconstruction Company Limited and Asset Reconstruction Company (India) Limited, and the proposed substitution of the Resolution Professional (RP). The Corporate Debtor, Jaipur Metals & Electricals Limited, was incorporated in 1943 and later acquired by the Government of Rajasthan in 1977. It was declared a relief undertaking in 1978 under the Rajasthan Relief Undertakings Act, 1961, until 07.12.2016. Alchemist filed an application under Section 7 of the

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## Facts

Jaipur Metals & Electricals Limited (Corporate Debtor) was incorporated in 1943 and acquired by the Government of Rajasthan in 1977. The Corporate Debtor was declared a relief undertaking from 03.10.1998 to 07.12.2016 under the Rajasthan Relief Undertakings Act, 1961. The Corporate Debtor took financial facilities from various banks, including IDBI, SBBJ, Central Bank of India, State Bank of Indore, and Oriental Bank of Commerce. These banks assigned their debts to Alchemist Asset Reconstruction Company Limited (Alchemist) and Asset Reconstruction Company (India) Limited (ARCIL). Alchemist filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 11.01.2018. The Adjudicating Authority admitted the Section 7 application on 13.04.2018. The

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## Issues and analysis

### Issue 1: Whether the claims of Alchemist and ARCIL were inadmissible due to being based on insufficiently …

**Ratio:** The existence of debt can be proved by different documents, irrespective of whether the

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**Reasoning:** The Adjudicating Authority held that the existence of debt could be proved by different

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**Interpretation:** The interpretation is that the IBC proceedings are independent of stamp duty

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**Application:** The NCLAT agreed with the Adjudicating Authority, stating that the admission of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** State of Ra…
- **Respondents:** Jaipur Metals &…; ArunavaS…

## Timeline

- **1943-01-01 — Incorporation of…**: Jaipur Metals & Electricals…
- **1977-01-01 — Acquisition by…**: The Management of the Corporate Debtor was…

## 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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