# In the amtter of Nag (India) Pvt. Ltd. MA-508-2019 in IBA-323-IB-CB-2019

> NCLT judgment dated 2019-05-30. Citation: TCN-2019-NCLT-03126. The application MA/508/2019 in IBA/323/IB/CB/2019 was filed for preponing the hearing which was…

- **Court:** NCLT
- **Order date:** 30 May 2019
- **Citation:** TCN-2019-NCLT-03126
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/in-the-amtter-of-nag-india-pvt-ltd-ma-508-2019-in-iba-323-ib-cb-2019-d6710497

## Summary

### Background

The application MA/508/2019 in IBA/323/IB/CB/2019 was filed for preponing the hearing which was originally fixed on 2019-06-12. The apprehension raised was that the Corporate Debtor was negotiating to dispose of machineries to the detriment of the Financial Creditors.

## Facts

The Union Bank of India filed an application IBA/323/IB/CB/2019 against NAG (INDIA) PVT LTD. An application MA/508/2019 was filed to prepone the hearing date, which was initially scheduled for 2019-06-12. The applicant raised concerns that the Corporate Debtor was planning to dispose of its machinery, potentially harming the interests of the financial creditors. The Corporate Debtor's counsel assured the court that the Corporate Debtor would not dispose of the machinery or land located at SIPCOT Industrial Complex, Narasingapuram Village, Ranipet, Vellore District, or any other assets. The court then issued an order restraining the Corporate Debtor from disposing of, encumbering, or leasing out the specified assets until further notice.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be restrained from disposing of its assets pending the hearing …

**Ratio:** The court has the power to issue orders to protect the interests of creditors and prevent

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**Reasoning:** The court considered the submission of the Corporate Debtor's counsel that the Corporate

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**Interpretation:** This interpretation allows the court to balance the interests of all parties

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**Application:** The court applied this principle to the specific facts of the case, restraining

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Union Bank of…
- **Respondents:** NAG (INDIA) PVT…
- **Advocates:** Aashish…; Chinna Ab…; +2 more

## Timeline

- **2019-05-30 — Hearing…**: Hearing held on…
- **2019-06-12 — Original Hear…**: Original date fixed for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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