# In the matter of Karpagam Spinners Pvt. Ltd. MA-669-IB-2018 In TCP-225-(IB)-2017

> NCLT judgment dated 2019-02-06. Citation: TCN-2019-NCLT-04981. The case involves an application (MA/668/IB/2018) filed by the Liquidator of M/s. Karpagam…

- **Court:** NCLT
- **Order date:** 6 Feb 2019
- **Citation:** TCN-2019-NCLT-04981
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karpagam-spinners-pvt-ltd-ma-669-ib-2018-in-tcp-225-ib-2017-061e6e81

## Summary

### Background

The case involves an application (MA/668/IB/2018) filed by the Liquidator of M/s. Karpagam Spinners Pvt. Ltd., which is under liquidation, in TCP/225(IB)/CB/2017. The Liquidator sought directions to cancel attachments made by the Employees State Insurance Corporation (ESIC) and Employees Provident Fund Organisation (EPFO) on the immovable properties of the Corporate Debtor, as well as to vacate entries related to a fraudulent sale agreement registered by Mr. V.T. Somasundaram. The ESIC and EPFO had attached the properties before and after the CIRP commencement date. The Liquidator argued that these attachments hinder the sale of the Corporate Debtor's assets for realization and that the claims of ESIC and EPFO have been determined according to the I&B Code, making

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## Facts

M/s. Karpagam Spinners Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP), which was initiated by an order dated 19.07.2017 in TCP/225/(IB)/2017. Subsequently, an order for liquidation was passed on 22.02.2018 in CA/55/IB/2018. Mr. G. Gunasekaran was appointed as the Liquidator. The Employees State Insurance Corporation (ESIC) attached the immovable properties of the Corporate Debtor on 28.12.2011, registered as Doc. No.3/2011 on 30.12.2011. The Recovery Officer, ESIC, handed over the immovable properties to the Resolution Professional on 01.12.2017 and filed a claim on 21.03.2018. The Employees Provident Fund Organisation (EPFO) attached the immovable properties on 26.07.2017, registered as Doc. No.6/2017 on 26.07.2017, and submitted a claim on

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## Issues and analysis

### Issue 1: Whether the attachments made by ESIC and EPFO on the immovable properties of the Corporate Debtor …

**Ratio:** The attachments made by ESIC and EPFO are subject to the provisions of the I&B Code,

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**Reasoning:** The court reasoned that the claims of ESIC and EPFO have been determined in accordance

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**Interpretation:** The I&B Code aims to consolidate and amend the laws relating to

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**Application:** The court applied the provisions of the I&B Code to the facts of the case,

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** G. Gunase…
- **Respondents:** M/s. Karpagam…; The Recovery…
- **Advocates:** G. Gunase…; G. Bhar…; +2 more

## Timeline

- **2017-07-19 — CIRP Init…**: Order passed admitting TCP/225/(IB)/2017 and initiating the CIR Process against M/s.…
- **2018-02-22 — Liquidation…**: Order for liquidation of the Company passed in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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