# In the matter of Empee Distilleries Limited MA-389 & 435-2019 in CP-280-IB-2018

> NCLT judgment dated 2019-05-03. Citation: TCN-2019-NCLT-03525. The case involves an application (MA/389/2019 & MA/435/2019) filed by Edelweiss Asset…

- **Court:** NCLT
- **Order date:** 3 May 2019
- **Citation:** TCN-2019-NCLT-03525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/empee-distilleries-limited-ma-389-435-2019-in-cp-280-ib-2018-a77bf759

## Summary

### Background

The case involves an application (MA/389/2019 & MA/435/2019) filed by Edelweiss Asset Reconstruction Company Limited (EARC) against the Resolution Professional (RP) of Empee Distilleries Limited. The EARC's claim of ₹179,10,75,807 was rejected by the RP, leading to the application before the Adjudicating Authority. The claim is based on a decree dated 08.10.2018 passed by the Hon'ble DRT-II, Chennai for ₹121,51,76,552.12 along with 10% interest from the date of filing of O.A. No. 502 of 2016.

## Facts

Edelweiss Asset Reconstruction Company Limited (EARC) filed an application against the Resolution Professional (RP) of Empee Distilleries Limited after the RP rejected EARC's claim of ₹179,10,75,807. The claim was based on a decree dated 08.10.2018 passed by the Hon'ble DRT-II, Chennai, for ₹121,51,76,552.12 plus 10% interest from the filing date of O.A. No. 502 of 2016. The RP argued that the claim should not be admitted because the decree was also against other defendants, and it was unclear if the creditor had recovered any money from them. EARC provided an undertaking to inform the RP of any money realized from other defendants. The applicant also gave an undertaking that it will not divulge information regarding the CIRP including Resolution Plans coming before

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the claim placed by Edelweiss Asset …

**Ratio:** When a decree is passed by a Court of Law against defendants jointly and severally, the

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**Reasoning:** The court reasoned that since the Corporate Debtor is one of the defendants in the

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**Interpretation:** This interprets the principle of joint and several liability in decrees,

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**Application:** The court applied this principle to the facts, stating that because Empee

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s. Edelweiss…
- **Respondents:** M/s. Empee…

## Timeline

- **2018-10-08 — Decree P…**: The Hon'ble DRT-II, Chennai, passed a decree for ₹121,51,76,552.12 along with 10%…
- **2019-05-02 — Order Pron…**: The order was heard and…

## 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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