# In the matter of I.E.L. Supervisor Association CP (IB) No. 45-ALD-2017 (S. 252 Schedule 8 of IBC, 2016)

> NCLT judgment dated 2018-05-01. Citation: TCN-2018-NCLT-01473. The case involves a petition filed by I.E.L. Supervisor Association under Section 252 (Eight…

- **Court:** NCLT
- **Order date:** 1 May 2018
- **Citation:** TCN-2018-NCLT-01473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/iel-supervisor-association-cp-ib-no-45-ald-2017-s-252-schedule-8-of-ibc-2016-f8c586f1

## Summary

### Background

The case involves a petition filed by I.E.L. Supervisor Association under Section 252 (Eight Schedule) of the Insolvency and Bankruptcy Code, 2016, against Duncan Industries Limited and other respondents. The applicant union representing the employees of Duncan Industries Limited (DIL) claimed that DIL wrongfully approached the BIFR (Board for Industrial and Financial Reconstruction) to be declared sick. The BIFR registered the case and declared DIL a sick industry. The applicant union moved an application before the BIFR to implead them as a necessary party, which was declined. The applicant association challenged the BIFR's finding before the High Court, which disposed of the writ petition directing the applicant union to file an application before the Appellate

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## Facts

I.E.L. Supervisor Association filed a petition under Section 252 of the Insolvency and Bankruptcy Code, 2016, challenging the BIFR's order and the sanctioned rehabilitation scheme for Duncan Industries Limited (DIL). The applicant union, representing DIL's employees, alleged that DIL wrongfully sought to be declared a sick company. The BIFR registered the case and declared DIL sick. The applicant's attempt to be impleaded as a necessary party was rejected by BIFR. The applicant challenged the BIFR's finding in the High Court, which directed the applicant to file an application before the Appellate Authority (AAIFR). The BIFR sanctioned a Draft Rehabilitation Scheme (DRS). The applicant further moved to the High Court for violation of the order. The applicant requested

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## Issues and analysis

### Issue 1: Whether the Applicant is authorized to file this reference under the provision of Section 252 …

**Ratio:** Only a company can refer to the National Company Law Tribunal under the Insolvency and

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**Reasoning:** The tribunal reasoned that the applicant association was not a company and therefore

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**Interpretation:** Section 252 of the IBC allows companies to file references under certain

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**Application:** Since the applicant, I.E.L. Supervisor Association, is not a company but an

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## Parties

- **Judges:** SH. V.P.…; Saroj Ra…
- **Appellants:** I.E.L. Supervisor…
- **Respondents:** Duncan Industries…; Union of…

## Timeline

- **2018-05-01 — Judgment/Order…**: Judgment/Order…
- **2016-01-01 — BIFR Ord…**: BIFR Order dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 252 — Amendments of Act 1of 2004](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-252)

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