# In the matter of Kumar's Metallurgical Corporation Limited IA No. 710-2019 in CP(IB)No. 416-7-HDB-2018

> NCLT judgment dated 2020-08-04. Citation: TCN-2020-NCLT-00908. The case involves an application (IA No. 710/2019) filed under Section 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Aug 2020
- **Citation:** TCN-2020-NCLT-00908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kumars-metallurgical-corporation-limited-ia-no-710-2019-in-cpibno-416-7-hdb-2018-14b7fbfb

## Summary

### Background

The case involves an application (IA No. 710/2019) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) 2016 by M/s. Vinayak Steels Limited, a Resolution Applicant, concerning the Corporate Debtor, M/s. Kumar's Metallurgical Corporation Limited. The applicant sought several reliefs, including staying the finalization of the approval of the Resolution Plan submitted by Respondent 7 (Mahalakshmi Profiles Private Limited), directing Mr. B.C. Ganesh (Respondent 10) to submit bank statements and income tax returns, directing Axis Bank Limited (Respondent 9) to submit an affidavit disclosing its relationship with Mr. B.C. Ganesh, directing the Resolution Professional to provide details of Resolution Plan considerations, and directing all CoC members to

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## Facts

M/s. Vinayak Steels Limited filed an application (IA No. 710/2019) under Section 60(5) of the IBC, challenging the CIRP process of M/s. Kumar's Metallurgical Corporation Limited. Vinayak Steels, a Resolution Applicant, alleged bias and irregularities in the selection of Mahalakshmi Profiles Private Limited (MPPL) as the successful Resolution Applicant. The applicant claimed that Prudent ARC Ltd (Respondent 1), a member of the CoC, colluded with MPPL (Respondent 7) to manipulate the process. Mr. B.C. Ganesh (Respondent 10) was alleged to have connections with multiple parties, raising concerns about conflict of interest. The applicant sought a stay on the approval of MPPL's Resolution Plan and directions for various parties to disclose information and submit affidavits.

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## Issues and analysis

### Issue 1: Whether the Respondent 7 is an …

**Ratio:** Section 29A of the IBC specifies the categories of persons who are ineligible to submit a

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**Reasoning:** The Applicant has not brought on record any fact or evidence to show that the successful

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**Interpretation:** Section 29A of the IBC defines the criteria for ineligibility of resolution

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**Application:** Since the Applicant has not brought on record any fact or evidence to show that

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** M/s.Vinayak…
- **Respondents:** M/s.Kumar's…; Prudent A…

## Timeline

- **2019-04-08 — Submission of…**: The Applicant submitted its…
- **2019-05-03 — RP's Ema…**: RP sent an…

## 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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