# In the matter of Surajbari Traders Private Limited Vs. Bharat NRE Coke Limited & Anr. CA(AT)(Insolvency)No. 1280 of 2019

> NCLAT judgment dated 2019-11-18. Citation: TCN-2019-NCLAT-00115. The case involves an appeal against the constitution of the Committee of Creditors (CoC). The…

- **Court:** NCLAT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLAT-00115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/surajbari-traders-private-limited-vs-bharat-nre-coke-limited-anr-ca-a9c4743f

## Summary

### Background

The case involves an appeal against the constitution of the Committee of Creditors (CoC). The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, rejected the application filed by the Appellant-Shareholder challenging the constitution of the CoC. The appellant is Surajbari Traders Private Limited. The application, CA(IB)1244/KB/2019, was filed by Suraksha ARC, a shareholder of the erstwhile corporate debtor, challenging the RP's constitution of CoC and allotment of voting share. The Adjudicating Authority deemed the application not maintainable because shareholders of the corporate debtor do not have the locus to challenge the RP's action in this manner.

## Facts

Surajbari Traders Private Limited filed an appeal against the constitution of the Committee of Creditors (CoC). The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, had rejected the application filed by the Appellant-Shareholder. The application, CA(IB)1244/KB/2019, was filed by Suraksha ARC, a shareholder of the erstwhile corporate debtor, challenging the RP's constitution of CoC and allotment of voting share. The Adjudicating Authority deemed the application not maintainable because shareholders of the corporate debtor do not have the locus to challenge the RP's action in this manner. The NCLAT condoned a delay of 5 days in filing the appeal. The NCLAT ultimately dismissed the appeal, finding no grounds to interfere with the constitution of the

…

## Issues and analysis

### Issue 1: Whether the shareholder of a corporate debtor has the locus standi to challenge the constitution of …

**Ratio:** Shareholders of a corporate debtor generally do not have the locus standi to challenge

…

**Reasoning:** The Adjudicating Authority and the NCLAT both found that shareholders lack the legal

…

**Interpretation:** The interpretation of the law suggests that the IBC framework prioritizes the

…

**Application:** In this specific case, Suraksha ARC, as a shareholder, filed an application

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Surajbari Traders…
- **Respondents:** Bharat NRE Coke…
- **Advocates:** Sandeep…; Aakansha…; +1 more

## Timeline

- **2019-09-27 — Impugned…**: The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, passed an…
- **2019-11-18 — NCLAT Or…**: The NCLAT heard the appeal, condoned the delay of 5 days, and ultimately dismissed the…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/surajbari-traders-private-limited-vs-bharat-nre-coke-limited-anr-ca-a9c4743f