# Dakshin Gujarat Vij Company Limited vs. Mr. Naren Sheth RP of Jaybharat Textiles & Real Estate Limited

> NCLT judgment dated 2026-07-14. Citation: TCN-2026-NCLT-00670. Dakshin Gujarat Vij Company Limited (Applicant), an operational creditor, filed an application…

- **Court:** NCLT
- **Order date:** 14 Jul 2026
- **Citation:** TCN-2026-NCLT-00670
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/dakshin-gujarat-vij-company-limited-vs-mr-naren-sheth-rp-of-jaybharat-textiles-r-xzyil

## Summary

### Background

Dakshin Gujarat Vij Company Limited (Applicant), an operational creditor, filed an application under Section 60(5) of the IBC, 2016, seeking a direction to the Resolution Professional (RP) of Jaybharat Textiles & Real Estate Limited (Corporate Debtor) to admit its claim as a secured operational creditor and include it in the resolution plan. The Applicant's claim arose from unpaid electricity dues, which were confirmed through various legal proceedings up to the High Court. Despite submitting its claim to the RP, the RP neither acknowledged nor rejected it and proceeded to seek approval for a resolution plan without including the Applicant's claim.

## Facts

Dakshin Gujarat Vij Company Limited (Applicant) filed an application under Section 60(5) of the IBC, 2016.

The Applicant sought a direction to the Resolution Professional (RP) to admit its claim as a secured operational creditor and include it in the resolution plan.

The Applicant is a company engaged in the business of electricity distribution in the State of Gujarat.

The Resolution Professional failed to consider the Applicant's claim submitted as a secured operational creditor of the Corporate Debtor.

The RP sought approval of the resolution plan from the Committee of Creditors (CoC) and filed IA No. 165 of 2021 without including the Applicant's claim.

The Corporate Debtor had obtained a high tension electricity connection from the Applicant on 02.05.2007.

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## Issues and analysis

### Issue 1: Whether the Resolution Professional failed to discharge their statutory obligations by not …

**Ratio:** The Resolution Professional failed to discharge their statutory obligations by neither

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**Reasoning:** The document explicitly states that the RP "neither acknowledged nor rejected the

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**Interpretation:** The NCLT interprets the RP's inaction as a failure to adhere to the duties

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**Application:** The RP's conduct in this case directly contravened the expected duties of a

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Dakshin Gujarat…
- **Respondents:** Jaybharat…; Jaybharat…; +1 more
- **Other parties:** Committee of…; Naren S…; +1 more
- **Advocates:** Maulik Na…

## Timeline

- **2007-05-02 — Electricity Co…**: Corporate Debtor obtained high tension…
- **2008-08-07 — Unauthorized Use…**: Unauthorized use of electricity…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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