# In the matter of Jalaram Cotton & Proteins Limited C.P. (IB) No. 119-10-NCLT-AHM-2017

> NCLT judgment dated 2017-11-15. Citation: TCN-2017-NCLT-00193. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Nov 2017
- **Citation:** TCN-2017-NCLT-00193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jalaram-cotton-proteins-limited-cp-ib-no-119-10-nclt-ahm-2017-1feb2c49

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Jalaram Cotton & Proteins Limited, the Corporate Debtor, through its Whole-time Director, Jayeshkumar Arvindbhai Popat, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed before the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench). The Corporate Debtor's registered office is located in Jasdan, Rajkot, Gujarat. The company's board resolution dated 21st April 2017, resolved to file a petition under the IBC. The company's Extraordinary General Body Meeting held on 24th May 2017, resolved to file necessary application before the Adjudicating Authority under the provisions of the IB Code.

## Facts

Jalaram Cotton & Proteins Limited (the Corporate Debtor) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's board resolved to file the petition on April 21, 2017, and the decision was ratified in an Extraordinary General Body Meeting on May 24, 2017. The Corporate Debtor's registered office is in Jasdan, Rajkot, Gujarat. The Corporate Debtor disclosed that Respondents No. 1 to 5 are Financial Creditors, apart from 131 Operational Creditors. The Corporate Debtor has committed default to the extent of Rs. 54,34,25,440.85 in respect of Financial Creditors and Rs. 7,20,54,888.82 in respect of Operational Creditors. Kotak Mahindra Bank Ltd., a

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## Issues and analysis

### Issue 1: Whether the pendency of winding-up proceedings before the High Court of Gujarat bars the initiation …

**Ratio:** The pendency of winding-up proceedings is not a bar to initiating CIRP if those

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**Reasoning:** The Hon'ble High Court of Gujarat disposed of the Company Petitions No. 388 and 389 of

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**Interpretation:** The court interpreted that the absence of pending winding-up proceedings

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**Application:** Since the winding-up petitions were withdrawn, the court held that the pendency

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Jayeshkumar…
- **Respondents:** Jalaram Cotton &…; Kotak Mahindra…
- **Advocates:** Mohit G…; Karan Va…; +4 more

## Timeline

- **2017-04-21 — Board Reso…**: Jalaram Cotton & Proteins Limited resolved to file a Petition under the provisions of the…
- **2017-05-24 — Extraordinary General…**: The Company resolved to file necessary Application before the Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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