# In the matter of Fort Gloster Industries Ltd. CA (IB) No. 584,647,650,712,713,736,887,1100,1122 & 1168-KB-2019 in CP(IB) No. 61-KB-2018

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01212. The case involves multiple applications related to the insolvency resolution of Fort Gloster…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fort-gloster-industries-ltd-ca-ib-no-58464765071271373688711001122-1168-kb-2019-83a6d8f6

## Summary

### Background

The case involves multiple applications related to the insolvency resolution of Fort Gloster Industries Ltd. (FGIL). The Corporate Debtor (FGIL) was admitted into Corporate Insolvency Resolution Process (CIRP) based on an application by an operational creditor. Several applications were filed concerning the approval of the resolution plan, the validity of trademark assignments, and objections from various stakeholders including financial creditors, operational creditors, and workmen. The key dispute revolves around the approval of the resolution plan submitted by Gloster Limited, the validity of trademark 'Gloster' ownership claimed by Gloster Cables Limited (GCL), and objections raised by other resolution applicants and creditors.

## Facts

Fort Gloster Industries Ltd. (FGIL) underwent CIRP after an application by an operational creditor. Gloster Cables Limited (GCL) claimed ownership of the trademark 'Gloster' based on assignments from FGIL. FGIL was referred to BIFR in 2001, and BIFR issued injunctions against asset disposal. GCL participated in the bidding for FGIL's assets but was unsuccessful. The resolution plan submitted by Gloster Limited was approved by the CoC with 73.21% voting share. Several creditors, including Stressed Assets Stabilization Fund (SASF) and West Coast Paper Mills Limited, raised objections. The resolution professional received two resolution plans, one from Gloster Limited and another from Hooghly Infrastructure Private Limited. The resolution professional also received a

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## Issues and analysis

### Issue 1: Whether the assignment of the trademark 'Gloster' to Gloster Cables Limited is valid under the …

**Ratio:** The validity of the trademark assignment depends on whether it was executed in violation

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**Reasoning:** The NCLT reasoned that the BIFR injunctions prohibited the disposal of assets without

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**Interpretation:** The interpretation involves the interplay between the Sick Industrial Companies

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**Application:** The NCLT applied the ratio to the facts by examining the dates of the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Jayanta…
- **Respondents:** Fort Gloster…

## Timeline

- **2018-08-09 — CP (IB) No. 61/KB/2018…**: The CP (IB) No. 61/KB/2018 was admitted by allowing the application filed by an…
- **2018-08-09 — Appointment of Interim…**: Mr. Manish Jain was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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