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

> NCLT judgment dated 2019-05-02. Citation: TCN-2019-NCLT-03552. The case involves M/s Alloys & Metals (INDIA) V/s. M/s. Hindustan Paper Corporation Ltd. before…

- **Court:** NCLT
- **Order date:** 2 May 2019
- **Citation:** TCN-2019-NCLT-03552
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindustan-paper-corporation-ltd-ib-418nd-2018-acb69ef0

## Summary

### Background

The case involves M/s Alloys & Metals (INDIA) V/s. M/s. Hindustan Paper Corporation Ltd. before the National Company Law Tribunal (NCLT), New Delhi Bench. The matter concerns the distribution of salaries to employees under the Consolidated Fund, which was not sanctioned by the cabinet. The employees are agitated due to non-receipt of salaries.

## Facts

M/s Alloys & Metals (INDIA) initiated a case against M/s Hindustan Paper Corporation Ltd. before the NCLT, New Delhi. The core issue revolves around the non-disbursement of salaries to the employees of Hindustan Paper Corporation Ltd. despite a proposal for distribution under the Consolidated Fund. The budgetary allocation for this purpose was not sanctioned by the cabinet, leading to employee unrest. The Corporate Insolvency Resolution Process (CIRP) has exceeded 270 days, and no resolution plan has been approved. The liquidation value of the corporate debtor's assets is estimated at Rs. 1100 crores, while the admitted claims amount to Rs. 2063 crores. The Committee of Creditors (COC) has recommended the Resolution Professional (RP) as the liquidator. An

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to redress the grievances of the employees regarding …

**Ratio:** The NCLT's jurisdiction is limited, and it is not vested with the power to redress

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**Reasoning:** The court reasoned that the employees' remedy, if any, lies before another forum,

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**Interpretation:** This highlights the separation of powers and jurisdictions, where labor-related

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**Application:** In this specific case, the court determined that it could not intervene in the

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** M/s Alloys &…
- **Respondents:** M/s. Hindustan…

## Timeline

- **2019-05-02 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-05-14 — Next Hearin…**: All applications listed…

## 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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