# In the matter of Suzlon Synthetics Ltd Vs.stressed Asset Stabilization Fund & Ors.,Company Appeal (AT) (Insolvency) No. 662-663 of 2022

> NCLAT judgment dated 2022-11-11. Citation: TCN-2022-NCLAT-00110. The appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 (IBC) by…

- **Court:** NCLAT
- **Order date:** 11 Nov 2022
- **Citation:** TCN-2022-NCLAT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/suzlon-synthetics-ltd-vsstressed-asset-stabilization-fund-orscompany-appeal-at-i-71f321e5

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Suzlon Synthetics Ltd., challenging an order dated 14.03.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) in CP (IB) No. 1567/ KB/ 2019. The appellant, claiming to be a financial creditor, contested the admission of a Section 7 application filed by Stressed Asset Stabilization Fund (SASF) against the Corporate Debtor, IC Textiles Limited. The appellant argued that the Section 7 petition was mala fide, aimed at recovery rather than insolvency resolution, and that other financial creditors, including the appellant, would be defrauded. The appellant also claimed that SASF stated an exorbitant debt amount in the Section 7 application, despite

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## Facts

Suzlon Synthetics Ltd. filed an appeal against an order by the Adjudicating Authority (NCLT, Kolkata Bench) admitting a Section 7 application filed by Stressed Asset Stabilization Fund (SASF) against IC Textiles Limited, the Corporate Debtor. Suzlon Synthetics claimed to be a financial creditor adversely affected by the order. SASF had initiated CIRP against IC Textiles Limited. Suzlon Synthetics argued that the Section 7 petition was mala fide and for recovery purposes only. They also contended that SASF had claimed an exorbitant debt amount despite a One Time Settlement (OTS) agreement and substantial payments made by IC Textiles. The appellant argued that the Adjudicating Authority's decision on the amount due to SASF was incorrect, given the partial payment of the

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## Issues and analysis

### Issue 1: Whether the Appellant has the locus standi to …

**Ratio:** The right to appeal is generally granted to parties directly affected by an order. A

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**Reasoning:** The tribunal considered the appellant's claim that the Impugned Order adversely affected

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**Interpretation:** The interpretation of locus standi involves determining whether the appellant

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**Application:** The tribunal assessed whether the appellant's claim of being adversely affected

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** Suzlon Synthetics…
- **Respondents:** I.C. Textiles…; Stressed Asset…

## Timeline

- **2022-11-11 — Judgment…**: The date of the judgment in the Company…
- **2022-03-14 — Order Da…**: Order date by which the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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