# In the matter of Dhanalakshmi Paper Mills Pvt. Ltd. MA-257-2019 in CP-722-IB-2017

> NCLT judgment dated 2019-08-01. Citation: TCN-2019-NCLT-02147. The case involves an application (MA/257/2019) within the context of a corporate insolvency…

- **Court:** NCLT
- **Order date:** 1 Aug 2019
- **Citation:** TCN-2019-NCLT-02147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dhanalakshmi-paper-mills-pvt-ltd-ma-257-2019-in-cp-722-ib-2017-99a45204

## Summary

### Background

The case involves an application (MA/257/2019) within the context of a corporate insolvency resolution process (CP/722/IB/2017). The applicant's counsel stated that an appeal was filed before the NCLAT challenging the approval of the Resolution Plan.

## Facts

Quantum Coal Energy (P) LTD initiated a corporate insolvency resolution process against Dhanalakshmi Paper Mills PVT LTD. An application, MA/257/2019, was filed in connection with CP/722/IB/2017. The applicant's counsel submitted that an appeal had been filed before the NCLAT challenging the approval of the Resolution Plan. Because of this appeal, the application before the NCLT became infructuous.

## Issues and analysis

### Issue 1: Whether the application (MA/257/2019) should be dismissed as infructuous due to the applicant's …

**Ratio:** An application becomes infructuous if the underlying circumstances or the relief sought

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**Reasoning:** The court reasoned that because the applicant had filed an appeal before the NCLAT

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**Interpretation:** The principle of an application becoming infructuous is interpreted to mean

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**Application:** In this case, the filing of an appeal before the NCLAT directly challenged the

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Shri. ANIL…
- **Appellants:** Quantum Coal…
- **Respondents:** Dhanalakshmi…

## Timeline

- **2017-01-01 — CP/722/IB/201…**: Corporate Insolvency Resolution Process initiated against Dhanalakshmi Paper Mills PVT…
- **2019-01-01 — MA/257/2019…**: An application (MA/257/2019) was filed…

## 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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