# In the matter of Deegee Cotsyn Private Limited MA No. 3545 of 2019 in CP No. 2285-MB-C-II-2018

> NCLT judgment dated 2021-09-23. Citation: TCN-2021-NCLT-01025. This case involves an application by IDBI Bank Ltd. under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Sept 2021
- **Citation:** TCN-2021-NCLT-01025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deegee-cotsyn-private-limited-ma-no-3545-of-2019-in-cp-no-2285-mb-c-ii-2018-59a81f64

## Summary

### Background

This case involves an application by IDBI Bank Ltd. under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions against the Resolution Professional (RP) of Deegee Cotsyn Private Limited (Corporate Debtor) to admit their claim as per Form C and update the Committee of Creditors (CoC) voting share ratio. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on February 26, 2019. IDBI Bank had sanctioned credit facilities to Deegee Orchards Private Limited, for which Deegee Cotsyn Private Limited provided a corporate guarantee. The RP rejected part of IDBI Bank's claim, leading to this application.

## Facts

IDBI Bank Ltd. filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions against the Resolution Professional (RP) of Deegee Cotsyn Private Limited to admit their claim. The CIRP against Deegee Cotsyn Private Limited was initiated on February 26, 2019. IDBI Bank had sanctioned credit facilities aggregating Rs. 35 Crore to Deegee Orchards Private Limited, including cash credit, term loan, and bank guarantee. Deegee Cotsyn Private Limited provided a corporate guarantee to secure these facilities. IDBI Bank invoked the corporate guarantee on July 10, 2014, due to the principal borrower's failure to make payments. IDBI Bank submitted a revised proof of claim for Rs. 61,41,79,589.59 on September 12, 2019. The RP rejected part of

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting a portion of IDBI Bank's claim …

**Ratio:** The legal principle applied is that the RP has a duty to collate and verify claims, and

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**Reasoning:** The court reasoned that the RP conscientiously reached the conclusion of not admitting

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**Interpretation:** This interpretation reinforces the RP's role as a gatekeeper in the CIRP

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**Application:** In this specific case, the court applied the principle by upholding the RP's

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** IDBI Bank…
- **Respondents:** Deegee Cotsyn…

## Timeline

- **2019-02-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Deegee Cotsyn…
- **2009-12-12 — Sanction…**: IDBI Bank sanctioned credit facilities to Deegee Orchards Private Limited vide Sanction…

## 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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