# In the matter of KAC Yarn Pvt. Ltd. MA-45-2019 in CP-599-IB-2017

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02758. The case involves an application (MA/45/2019) within the context of a corporate insolvency…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kac-yarn-pvt-ltd-ma-45-2019-in-cp-599-ib-2017-da348287

## Summary

### Background

The case involves an application (MA/45/2019) within the context of a corporate insolvency resolution process (CIRP) or liquidation (CP/599/IB/2017) of KAC Yarn Pvt Ltd. The applicant, representing the workmen, claims they did not file a claim during CIRP or liquidation. The court is addressing the issue of admitting claims of workmen or employees based on the Corporate Debtor's books of accounts, even if no claim was previously made.

## Facts

The case originates from CP/599/IB/2017, involving KAC Yarn Pvt Ltd. An application, MA/45/2019, was filed by 49 employees of KAC Yarn Pvt Ltd. The employees, represented by Rohan Ratasekharan, claimed they had not made any claims during the CIRP or liquidation process. The court noted the presence of counsels from both sides. The core issue revolves around the admissibility of the workmen's claims by the liquidator, even in the absence of prior claim submissions, based on the books of accounts of the corporate debtor.

## Issues and analysis

### Issue 1: Whether the Liquidator can admit claims of workmen or employees based on the Books of Accounts of …

**Ratio:** Regulation 19 (4) of the IBBI (Liquidator Processing) Regulation, 2016, provides that the

…

**Reasoning:** The court reasoned that Regulation 19(4) explicitly grants the liquidator the authority

…

**Interpretation:** Regulation 19(4) is interpreted as a provision that empowers the liquidator to

…

**Application:** In this case, the court applied the ratio of Regulation 19(4) by directing the

…

## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** 49 EMPLOYEES OF…
- **Respondents:** KAC YARN P…

## Timeline

- **2017-01-01 — Petition…**: CP/599/IB/2017 was…
- **2019-01-01 — Application…**: MA/45/2019 wa…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/kac-yarn-pvt-ltd-ma-45-2019-in-cp-599-ib-2017-da348287