# In the matter of Duncans Industries Limited IA No.1256-KB-2020 in CP (IB) No.184-KB-2018

> NCLT judgment dated 2021-05-28. Citation: TCN-2021-NCLT-02087. The case involves an application filed by the Resolution Professional (RP) of Duncans…

- **Court:** NCLT
- **Order date:** 28 May 2021
- **Citation:** TCN-2021-NCLT-02087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/duncans-industries-limited-ia-no1256-kb-2020-in-cp-ib-no184-kb-2018-317eede5

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Duncans Industries Limited, a corporate debtor, against Merico Agro Industries Private Limited, the respondent, under sections 19(2), 25(2), and 70(1) of the Insolvency and Bankruptcy Code, 2016. The RP sought orders directing Merico to comply with directions for taking over possession of tea estates, providing information, and managing the affairs of the corporate debtor. The corporate debtor had obtained legal rights from the State of West Bengal over several tea gardens, but the Ministry of Commerce & Industry directed the Tea Board to take over control of seven tea gardens leased to Duncans. The corporate debtor challenged this notification in the Calcutta High Court, which upheld the

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## Facts

Duncans Industries Limited, the corporate debtor, faced Corporate Insolvency Resolution Process (CIRP). Ram Ratan Modi was appointed as the Resolution Professional (RP). Duncans had leased several tea gardens from the State of West Bengal. The Ministry of Commerce & Industry directed the Tea Board to take over control of seven tea gardens leased to Duncans. Duncans challenged this notification in the Calcutta High Court, but the court upheld the notification. Duncans then entered into separate agreements with Merico Agro Industries Private Limited, the respondent, to alienate possession of four tea gardens: Hantapara, Garganda, Tulsipara, and Dumchipara. The leases for these tea gardens expired between 1995 and 2004. The RP sought details of these tea estates from

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## Issues and analysis

### Issue 1: Whether the four tea gardens in question can be called the asset of the corporate debtor in a …

**Ratio:** Under Section 25(1) of the IBC, the resolution professional has a duty to preserve and

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**Reasoning:** The court reasoned that the four tea gardens do not belong to the corporate debtor in any

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**Interpretation:** The court interpreted that the term 'asset' under the IBC refers to assets over

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**Application:** The court applied the ratio to the facts by noting that the leases for the tea

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Ram Ratan…
- **Respondents:** Duncans Industries…; Merico Agro…
- **Advocates:** Joy S…; Dipanka…; +5 more

## Timeline

- **2016-01-28 — Notification by Ministry…**: Ministry of Commerce & Industry directed the Tea Board to take over the control and…
- **2016-03-15 — Order of Calcutta High…**: The Hon'ble Calcutta High Court passed orders in WP No.1897(W)/2016 upholding the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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