# In the matter of Juggilal Kamlapat Jute Mills Ltd. CP No. (IB)-41-ALD-2018 (S. 47 & 49 of the Code)

> NCLT judgment dated 2018-04-09. Citation: TCN-2018-NCLT-01580. The petition was filed under Sections 47 and 49 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Apr 2018
- **Citation:** TCN-2018-NCLT-01580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/juggilal-kamlapat-jute-mills-ltd-cp-no-ib-41-ald-2018-s-47-49-of-the-code-8127f4a2

## Summary

### Background

The petition was filed under Sections 47 and 49 of the Insolvency and Bankruptcy Code, 2016, seeking an investigation into an undervalued lease deed transaction dated 2017-05-15, concerning land and factory structures. The petitioner contended that the transaction was made in favor of M/s Skyscrapers Niwas Pvt. Ltd. and was in violation of a Supreme Court order. The respondent no.1, Juggilal Kamlapat Jute Mills Company Ltd., was registered with the Board for Industrial and Financial Reconstruction (BIFR) since 1994, and any asset transfer without permission is void. The petitioner argued that the Adjudicating Authority under the I&B Code is the successor to BIFR and can declare such transactions void. The main relief sought was an investigation into the alleged

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## Facts

Shiv Kant filed a petition under Sections 47 and 49 of the Insolvency & Bankruptcy Code, 2016, seeking to investigate an undervalued lease deed transaction dated 2017-05-15, involving 5 acres 35 poles 6 square yards (93.75 square inches) of land with factory sheds, godowns, and plant. The transaction favored M/s Skyscrapers Niwas Pvt. Ltd. The petitioner claimed the transaction violated a Supreme Court order. Respondent no. 1, M/S Juggilal Kamlapat Jute Mills Company Ltd., was registered with the Board for Industrial and Financial Reconstruction (BIFR) since 1994, and any asset transfer without permission is void. The petitioner argued the Adjudicating Authority under I&B Code is BIFR's successor and can void such transactions. The petitioner sought an

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## Issues and analysis

### Issue 1: Whether the petition under Sections 47 and 49 of the Insolvency & Bankruptcy Code, 2016 is …

**Ratio:** Sections 47 and 49 of the I&B Code, 2016, are applicable only during the liquidation

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**Reasoning:** The court reasoned that the provisions of the I&B Code related to undervalued

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**Interpretation:** The court interpreted Sections 47 and 49 of the I&B Code to be contingent

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**Application:** Since the liquidation process had not yet started against J.K. Jute Mills

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## Parties

- **Judges:** SH. V.P.…; Saroj Ra…
- **Appellants:** Shiv…
- **Respondents:** M/s. Juggilal…

## Timeline

- **2017-05-15 — Lease Deed Tra…**: Date of the undervalued lease deed transaction in respect of 5 acres 35 poles 6 square…
- **2014-11-13 — Supreme Court…**: Final judgment/order passed by the Hon'ble Supreme Court of India reported in (2015) 1…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 47 — Application by creditor in cases of undervalued…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-47)

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