# In the matter of Diamond Power Infrastructure Ltd. IA 139 of 2019 in CP(IB)No. 137/7/NCLT/AHM/2018

> NCLT judgment dated 2020-09-04. Citation: TCN-2020-NCLT-00705. This is an application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 4 Sept 2020
- **Citation:** TCN-2020-NCLT-00705
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diamond-power-infrastructure-ltd-ia-139-of-2019-in-cpibno-1377ncltahm2018-047bea83

## Summary

### Background

This is an application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, against the Resolution Professional of the Corporate Debtor, Diamond Power Infrastructure Ltd., which is undergoing Corporate Insolvency Resolution Process (CIRP) since August 24, 2018. The applicant sought directions for the Resolution Professional to return goods (raw materials/semi-finished/finished) owned by the applicant but lying with the Corporate Debtor. The applicant claimed the raw material was delivered to the Corporate Debtor for processing, with an agreement that the Corporate Debtor would return the processed goods. The Resolution Professional refused to return the goods, citing the moratorium under Section 14 of the IBC and unpaid processing charges.

## Facts

KEC International Ltd. (the Applicant) filed an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking the return of goods (raw materials/semi-finished/finished) from the Resolution Professional (RP), Mr. Bhuvan Madan, of Diamond Power Infrastructure Ltd. (the Corporate Debtor). The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on August 24, 2018. The Applicant claimed that the goods were delivered to the Corporate Debtor for processing under a contract of bailment, with an agreement that the processed goods would be returned. The RP refused to return the goods, citing the moratorium under Section 14 of the IBC and the Applicant's failure to pay processing charges of Rs. 37.37 lacs. The Committee of

…

## Issues and analysis

### Issue 1: Whether the goods (raw materials/semi-finished/finished) lying with the Corporate Debtor, Diamond …

**Ratio:** Section 18(f) of the Insolvency & Bankruptcy Code, 2016, states that the Resolution

…

**Reasoning:** The court reasoned that the goods were in the custody of the Corporate Debtor for

…

**Interpretation:** The court interpreted Section 18(f) of the IBC to mean that the Resolution

…

**Application:** In this case, the goods were delivered to the Corporate Debtor for processing

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** KEC International…
- **Respondents:** Diamond Power…; Bhuvan Mad…
- **Advocates:** Rashesh San…; Nirag P…; +1 more

## Timeline

- **2018-08-24 — Admission in…**: Diamond Power Infrastructure Ltd. was admitted into Corporate Insolvency Resolution…
- **2019-12-11 — 12th Committee of…**: The 12th Committee of Creditors meeting was held, wherein the dispute about the goods was…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/diamond-power-infrastructure-ltd-ia-139-of-2019-in-cpibno-1377ncltahm2018-047bea83