# 30th May 2019 in the matter of Tiffins Barytes Asbestors & paints Ltd. MA-491 & 504-2018 In CP-39-IB-CB-2018

> NCLT judgment dated 2019-05-30. Citation: TCN-2019-NCLT-03124. The case involves two applications, MA/504/2018 and MA/491/2018, filed in CP/39/IB/CB/2018…

- **Court:** NCLT
- **Order date:** 30 May 2019
- **Citation:** TCN-2019-NCLT-03124
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/30th-may-2019-in-the-matter-of-tiffins-barytes-asbestors-paints-ltd-ma-491-504-2-1cbda14e

## Summary

### Background

The case involves two applications, MA/504/2018 and MA/491/2018, filed in CP/39/IB/CB/2018 under Sections 60, 66, 71, and 73 of the Insolvency and Bankruptcy Code, 2016. These applications concern the rejection of claims by the Resolution Professional, Mr. Vasudevan, against the corporate debtor, Tiffins Barytes Asbestos & Paints Ltd. Sujathaa Mehta, the applicant, seeks the admission of her claims, which were initially filed as both a financial creditor and an operational creditor. The Resolution Professional rejected these claims due to various discrepancies and non-compliance with the IBC regulations, particularly regarding the submission of claims in electronic form and the validity of cash transactions.

## Facts

The Corporate Debtor, Tiffins Barytes Asbestos & Paints Ltd., availed short-term loans from Udhyaman Investments Private Ltd. and defaulted on repayment. Consequently, Udhyaman Investments initiated CIRP under Section 7 of the I&B Code, and Mr. Vasudevan was appointed as the Interim Resolution Professional. Sujathaa Mehta filed claims as both a financial creditor and an operational creditor, which were subsequently rejected by the Resolution Professional. The claims included amounts of Rs.4,04,54,000/- and Rs.11,15,48,000/-, based on loan agreements and a Memorandum of Understanding (MoU). The Resolution Professional rejected the claims citing discrepancies, non-compliance with electronic submission requirements, and the absence of entries in the Corporate

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## Issues and analysis

### Issue 1: Whether the claims of the Applicant based on the cash transactions are admissible in the absence of …

**Ratio:** The legal principle applied is that for a claim to be admissible, it must be supported by

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**Reasoning:** The court reasoned that the absence of entries in the Corporate Debtor's books of account

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**Interpretation:** The interpretation of the legal issue involves understanding the requirements

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Sujathaa…
- **Respondents:** Tiffins Barytes…; Vasud…

## Timeline

- **2018-03-12 — Order for CIRP…**: Authority admitted the Application under Section 7 of the I&B Code, initiating the CIRP…
- **2018-03-27 — Applicant's Initial…**: Sujathaa Mehta filed a claim as a…

## Legal provisions

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

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