# In the matter of GPI Textiles Ltd. CA Nos. 259,261 & 650-2019 in CP (IB) No. 35-Chd-HP-2019

> NCLT judgment dated 2021-10-06. Citation: TCN-2021-NCLT-00839. The case involves multiple CAs (259/2019, 261/2019, and 650/2019) filed under Section 60(5) of…

- **Court:** NCLT
- **Order date:** 6 Oct 2021
- **Citation:** TCN-2021-NCLT-00839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gpi-textiles-ltd-ca-nos-259261-650-2019-in-cp-ib-no-35-chd-hp-2019-e3b490a6

## Summary

### Background

The case involves multiple CAs (259/2019, 261/2019, and 650/2019) filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, within the Corporate Insolvency Resolution Process (CIRP) of GPI Textiles Ltd. initiated via CP (IB) No. 35/Chd/HP/2018 filed by Phoenix Arc Pvt. Ltd. These CAs challenge the rejection of claims by the Resolution Professional. TDB Spinners Pvt. Ltd. (CA 259/2019), M/s M.K. Cotex (CA 261/2019), and M/s Tanmay Pure Spun (CA 650/2019), all operational creditors, filed these applications after their claims were rejected. The core issue revolves around the Resolution Professional's rejection of claims, particularly concerning awards from the MSME Facilitation Council and the submission of necessary documentation.

## Facts

1. Corporate Insolvency Resolution Process (CIRP) was initiated against GPI Textiles Limited via CP (IB) No. 35/Chd/HP/2018 filed by Phoenix Arc Pvt. Ltd., a financial creditor, and admitted on 2018-07-06.
2. TDB Spinners Pvt. Ltd. (CA 259/2019), M/s M.K. Cotex (CA 261/2019), and M/s Tanmay Pure Spun (CA 650/2019) are operational creditors of GPI Textiles Limited.
3. Each of these operational creditors filed CAs under Section 60(5) of the IBC 2016, challenging the Resolution Professional's rejection of their claims.
4. TDB Spinners Pvt. Ltd. and M/s Tanmay Pure Spun obtained awards from the MSME Facilitation Council against GPI Textiles Limited, specifically dated 2014-11-26.
5. The Resolution Professional rejected the claims of TDB Spinners Pvt. Ltd., M/s M.K. Cotex, and

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the claims of the operational …

**Ratio:** The principle is that the time prescribed for submission of claims is directory, not

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**Reasoning:** The court reasoned that while it is the duty of a claimant to furnish all required

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**Interpretation:** This interprets the IBC to allow for some flexibility in the submission of

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**Application:** The court applied this reasoning by allowing M/s Tanmay Pure Spun (CA 650/2019)

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## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Appellants:** TDB Spinners Pvt.…
- **Respondents:** GPI Textile…; Jalesh Kumar…

## Timeline

- **2018-07-06 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against GPI Textiles Limited…
- **2018-07-12 — IRP Appoi…**: An Interim Resolution…

## 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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