# In the matter of Baghauli Sugar and Distillery Limited IA No. 116-2020 and other IAs in CP (IB) No. 342-ALD-2018

> NCLT judgment dated 2020-11-11. Citation: TCN-2020-NCLT-00266. The case involves multiple applications (IA NO. 116/2020, IA NO.136/2020, IA NO.161/2020, IA…

- **Court:** NCLT
- **Order date:** 11 Nov 2020
- **Citation:** TCN-2020-NCLT-00266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baghauli-sugar-and-distillery-limited-ia-no-116-2020-and-other-ias-in-cp-ib-no-3-77685255

## Summary

### Background

The case involves multiple applications (IA NO. 116/2020, IA NO.136/2020, IA NO.161/2020, IA NO.213/2020, IA NO.252/2020 & IA NO. 253/2020) filed in connection with a Company Petition (IB)No.342/ALD/2018. The Corporate Debtor, M/S Baghauli Sugar & Distillery Limited, is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Bank of Baroda under Section 7 of the IBC. The applications primarily seek to restrain the Resolution Professional (RP) from finalizing the Resolution applicant or the Resolution plan and to set aside steps taken by the RP, specifically concerning the issuance and reissuance of Form-G. The Corporate Debtor, through its Suspended Director, filed the present IAs under Section 60(5) of the IBC, 2016 read with Rule 11 of the NCLT

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## Facts

Bank of Baroda initiated CIRP against M/S Baghauli Sugar & Distillery Limited under Section 7 of the IBC. The Tribunal admitted the petition on 2020-02-07. Vivek Raheja was appointed as IRP and later confirmed as Resolution Professional. After the admission of the petition, the Corporate Debtor offered to settle the outstanding dues with the Financial Creditors. The COC acknowledged the settlement proposal on 2020-07-09 and was discussing terms. The RP published Form-G on 2020-06-11 inviting expression of interest. The Corporate Debtor contended that the RP's actions of reissuing Form-G on 2020-08-13 and 2020-10-06 were illegal. The COC authorized the RP to issue Form-G on 2020-08-06. The RP stated that the CIRP was in an advanced stage, with a final list of

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## Issues and analysis

### Issue 1: Whether the Resolution Professional should be restrained from finalizing the Resolution applicant …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 aims to resolve corporate insolvencies and save

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**Reasoning:** The Adjudicating Authority considered the provisions and object of the IBC, emphasizing

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**Interpretation:** The court interprets the IBC as prioritizing the resolution of corporate

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**Application:** The court allowed the applicant to present a fresh OTS proposal, indicating a

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Bank of B…
- **Respondents:** M/S BAGHAULI…; Vivek R…

## Timeline

- **2018-01-01 — Company Pe…**: Company Petition…
- **2020-02-07 — CIRP Init…**: CIRP initiated on the Company Petition filed by Bank of Baroda under Section 7 of IBC and…

## 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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