# In the matter of Khandoba Prasanna Sakhar Karkhana Ltd. MA 662,1509  2104-2019 in CP No. 1368-I&BC-MB-MAH-2017

> NCLT judgment dated 2019-08-01. Citation: TCN-2019-NCLT-02142. The case involves a resolution plan for Khandoba Prasanna Sakhar Karkhana Limited (KPSKL), a…

- **Court:** NCLT
- **Order date:** 1 Aug 2019
- **Citation:** TCN-2019-NCLT-02142
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khandoba-prasanna-sakhar-karkhana-ltd-ma-6621509-2104-2019-in-cp-no-1368-ibc-mb-9e7cf0b1

## Summary

### Background

The case involves a resolution plan for Khandoba Prasanna Sakhar Karkhana Limited (KPSKL), a corporate debtor, under the Insolvency and Bankruptcy Code, 2016. The Karad Urban Co-operative Bank Ltd., the financial creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against KPSKL due to a financial debt of Rs. 17,86,84,138/- and a default of Rs. 28,46,86,768/-. The CIRP commenced on 01.01.2018. Several applications were filed, including one by an operational creditor regarding the rejection of its claim, one by the promoter seeking permission to submit a resolution plan, and one by the Resolution Professional (RP) seeking approval of a resolution plan submitted by Sai Agro (India) Chemicals.

## Facts

The Karad Urban Co-operative Bank Ltd. initiated CIRP against Khandoba Prasanna Sakhar Karkhana Limited (KPSKL) due to a financial debt of Rs. 17,86,84,138/- and a default of Rs. 28,46,86,768/-. The CIRP commenced on 01.01.2018. The Financial Creditor held 98% voting share in the CoC, with the remaining 2% held by Jankalyan Nagari SahPata Sanstha. An operational creditor filed MA 1509/2019 challenging the rejection of its claim by the RP. The RP argued that the claim was filed belatedly and that a director of the operational creditor was a key managerial personnel of KPSKL. The promoter of KPSKL filed MA 2104/2019 seeking permission to submit a resolution plan, stating that KPSKL was classified as MSME. The RP filed MA 662/2019 seeking approval of the resolution plan

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## Issues and analysis

### Issue 1: Whether the operational creditor's application (MA 1509/2019) should be allowed, considering the …

**Ratio:** The RP's submissions and the fact that the Operational Creditor did not file its claim

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**Reasoning:** The court rejected the application because the operational creditor failed to file its

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**Interpretation:** The court interprets the I&B Code to prioritize timely filing of claims and

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**Application:** The ratio and reasoning are applied to the facts by emphasizing the operational

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** The Karad Urban…
- **Respondents:** Khandoba Prasanna…

## Timeline

- **2017-09-07 — Petition…**: The 'Financial Creditor' Karad Urban Co-operative Bank Ltd. filed a Petition by invoking…
- **2018-01-01 — CIRP Comm…**: The said Petition was admitted vide an Order dated 01.01.2018 (CP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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