# In the matter of Hindustan Paper Corporation Ltd. (IB)-418(ND)-2018

> NCLT judgment dated 2019-04-04. Citation: TCN-2019-NCLT-04157. The case involves M/s Alloys & Metals (India) V/s. M/s. Hindustan Paper Corporation Ltd.…

- **Court:** NCLT
- **Order date:** 4 Apr 2019
- **Citation:** TCN-2019-NCLT-04157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindustan-paper-corporation-ltd-ib-418nd-2018-465f0281

## Summary

### Background

The case involves M/s Alloys & Metals (India) V/s. M/s. Hindustan Paper Corporation Ltd. Several applications (CA 276/2019, CA 288/2019, CA 255/2018) were filed. CA 276/2019 was filed by the Resolution Professional (RP) due to lack of cooperation from non-applicants regarding audited accounts. CA 288/2019 was filed by a subsidiary of the Corporate Debtor, Hindustan Newsprint Limited, seeking permission to raise finance. CA 255/2018 was filed by the RP seeking investigation into the affairs of the Corporate Debtor.

## Facts

M/s Alloys & Metals (India) initiated proceedings against M/s Hindustan Paper Corporation Ltd. The Resolution Professional (RP) filed CA 276/2019, stating a lack of cooperation from non-applicants in providing audited accounts for 2018. Mr. Rajat Sen, a non-applicant, claimed willingness to cooperate. Hindustan Newsprint Limited, a subsidiary of the Corporate Debtor, filed CA 288/2019, seeking permission to raise finance. The RP also filed CA 255/2018, seeking investigation into the Corporate Debtor's affairs. The Ministry of Heavy Industries had a budgetary provision of Rs. 90 crores for employee salaries, but it was not disbursed. The court considered these facts and circumstances.

## Issues and analysis

### Issue 1: Whether the non-applicants should be directed to provide the audited accounts as requested by the …

**Ratio:** Cooperation from all parties is essential for the smooth functioning of the insolvency

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**Reasoning:** The court noted the RP's submission regarding the lack of cooperation and the

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**Interpretation:** The IBC mandates cooperation from all stakeholders to facilitate a transparent

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**Application:** The court directed the non-applicants to provide the audited accounts within a

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** Aditya S…
- **Respondents:** Hindustan Paper…; Rajat S…

## Timeline

- **2019-04-04 — Hearing…**: Hearing before the New Delhi Bench of…
- **2018-06-30 — Accounting…**: Audited accounts for the year 2018 up…

## 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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