# In the matter of Tourism Finance Corporation of India Ltd. Vs. Rainbow Papers CA (AT) (Insolvency) No. 354 of 2019

> NCLAT judgment dated 2019-12-19. Citation: TCN-2019-NCLAT-00006. The document pertains to a set of appeals (Company Appeal (AT) (Insolvency) Nos. 354, 364,…

- **Court:** NCLAT
- **Order date:** 19 Dec 2019
- **Citation:** TCN-2019-NCLAT-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tourism-finance-corporation-of-india-ltd-vs-rainbow-papers-ca-01dc71bb

## Summary

### Background

The document pertains to a set of appeals (Company Appeal (AT) (Insolvency) Nos. 354, 364, 404 & 1001 of 2019) filed before the National Company Law Appellate Tribunal (NCLAT), New Delhi, challenging the approval of a resolution plan for 'Rainbow Papers Limited' ('Corporate Debtor'). The appeals were filed by various parties including Tourism Finance Corporation of India Ltd., Virag Enterprise, State Tax Officer (1), and Regional Provident Fund Commissioner-I, Ahmedabad. These appeals contested the categorization of creditors, the distribution of funds under the resolution plan, and the treatment of statutory dues.

## Facts

Rainbow Papers Limited ('Corporate Debtor') underwent Corporate Insolvency Resolution Process (CIRP). The Resolution Professional filed an application seeking approval of the 'Resolution Plan' submitted by ‘Kushal Limited'. Tourism Finance Corporation of India Limited ('Financial Creditor') filed an Interlocutory Application alleging wrongful categorization as an ‘Unsecured Financial Creditor'. Virag Enterprise ('Operational Creditor') alleged wrong distribution and delayed payment in the ‘Resolution Plan'. 'Sales Tax Officer (1)' prayed for payment of total dues of Rs.47,35,72,314/- towards Value Added Tax/ Central Sales Tax, claiming to be a ‘Secured Creditor'. The Adjudicating Authority rejected the applications and approved the ‘Resolution Plan' on February 27,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (National Company Law Tribunal) or this Appellate Tribunal …

**Ratio:** The Appellate Tribunal cannot decide the question of fact relating to whether it is a

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**Reasoning:** The tribunal reasoned that the case of Tourism Finance Corporation of India Limited was

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**Interpretation:** Section 61(3) of the I&B Code limits the grounds on which an appeal can be

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**Application:** The tribunal applied this principle to the case of Tourism Finance Corporation

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Tourism Finance…
- **Respondents:** Rainbow Papers…; Rainbow Papers…
- **Advocates:** Sumant…; Srishti K…; +10 more

## Timeline

- **2016-04-04 — Notice for…**: Tourism Finance Corporation of India Ltd. issued notices to the principal borrower and…
- **2016-04-15 — Notice for…**: Tourism Finance Corporation of India Ltd. issued notices to the principal borrower and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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