# In the matter of Chowel India Pvt. Ltd. IA-415,422,,458 & 459-CHE-2021 in IBA-1121-2019

> NCLT judgment dated 2021-11-02. Citation: TCN-2021-NCLT-00618. The Resolution Professional (RP) of Chowel India Private Ltd. filed multiple Interlocutory…

- **Court:** NCLT
- **Order date:** 2 Nov 2021
- **Citation:** TCN-2021-NCLT-00618
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chowel-india-pvt-ltd-ia-415422458-459-che-2021-in-iba-1121-2019-067ac3a2

## Summary

### Background

The Resolution Professional (RP) of Chowel India Private Ltd. filed multiple Interlocutory Applications (IAs) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions from the Adjudicating Authority to the Respondents to pay outstanding dues to the Corporate Debtor (CD). The Corporate Insolvency Resolution Process (CIRP) commenced on May 5, 2020. The RP had a prima facie opinion based on the books of accounts that certain sums were pending from the running account of the CD from various respondents.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Chowel India Private Ltd. commenced on May 5, 2020. Nithiyanantham Ramachandran was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional (RP). The RP filed multiple Interlocutory Applications (IAs) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, against Sharda Motors Industries Ltd, S.K. Associates, Sri Stars CNC, and SR Stamping Components, seeking directions for them to pay outstanding dues to Chowel India Private Ltd. The RP based these applications on a prima facie opinion derived from the books of accounts, indicating pending sums from the running accounts of the respondents. Demand notices were issued, but no payments were made. The RP

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can issue directions to the Respondents to pay the outstanding …

**Ratio:** Section 60(5) of the IBC, 2016, grants the National Company Law Tribunal jurisdiction to

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**Reasoning:** The court reasoned that the RP's approach of seeking directions for payment under Section

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**Interpretation:** Section 60(5) of the IBC provides the NCLT with broad jurisdiction over matters

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**Application:** In this case, the court found that the RP's application under Section 60(5) was

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Nithiyanantham…
- **Respondents:** Chowel India Pvt.…; Sharda Motors…
- **Advocates:** A. G. Sathiyanaray…; Karan Mal…

## Timeline

- **2020-05-05 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-07-21 — RP Appoin…**: The CoC confirmed the Applicant as the…

## 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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