# In the matter of Cethar Ltd. (V Nagarajan Vs. ICICI Bank Ltd.) MA 68-2018 in CA-17-2018 in CP-511-(IB)-2017

> NCLT judgment dated 2018-08-17. Citation: TCN-2018-NCLT-00932. The case involves an application (MA 68/2018) filed in CA/17/2018 by the Resolution…

- **Court:** NCLT
- **Order date:** 17 Aug 2018
- **Citation:** TCN-2018-NCLT-00932
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cethar-ltd-v-nagarajan-vs-icici-bank-ltd-ma-68-2018-in-ca-17-2018-in-cp-511-a661fa71

## Summary

### Background

The case involves an application (MA 68/2018) filed in CA/17/2018 by the Resolution Professional (Mr. V. Nagarajan) seeking leave to amend CA/17/2018 filed in CP/511/2017. The Resolution Professional wants to insert “Para 4A” as part of the facts set out in “Para 4” of the CA. The proposed amendment relates to the sale of the Corporate Debtor's property and whether it required shareholder approval under Section 180 of the Companies Act, 2013.

## Facts

The Resolution Professional filed MA 68/2018 in CA/17/2018 seeking leave to amend CA/17/2018 filed in CP/511/2017 to include “Para 4A” as part of the facts. The properties described in Annexures 'A' and 'B' to CA 17/2018, being land and building of the Corporate Debtor, were valued at Rs.90 Crore in June 2015. Within 3 months, ICICI Bank Limited acquired the property via absolute sale deeds executed by the Corporate Debtor for Rs.45 Crores. A significant portion of the proceeds was used to settle dues of M/s. Cethar Constructions Ltd., a related party (subsidiary) of the Corporate Debtor. The Resolution Professional alleges the property was sold significantly less than its value, and the sale was primarily to repay loans of the related party. The transaction occurred

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## Issues and analysis

### Issue 1: Whether the proposed amendment by the Resolution Professional introduces a new cause of action or …

**Ratio:** The amendment of pleadings should ordinarily be allowed by the Court if it is satisfied

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**Reasoning:** The court reasoned that the RP is merely adding a legal ground that the sale of the

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**Interpretation:** The court interpreted the legal principle to mean that amendments should be

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**Application:** The court applied this principle to the case by finding that the proposed

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** V. Naga…
- **Respondents:** M/s. ICICI Bank…

## Timeline

- **2018-08-17 — Order Del…**: Order delivered on 17th…
- **2017-06-16 — CIRP Commencem…**: CIRP commencement date…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 180 — Civil court not to have jurisdiction](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-180)

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