# 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-00909. 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-00909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kumars-metallurgical-corporation-limited-ia-no-710-2019-in-cpibno-416-7-hdb-2018-17e15f9a

## 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 to submit bank statements and income tax returns, directing Axis Bank Limited to submit a notarized affidavit disclosing its relationship with Mr. B.C. Ganesh, directing the Resolution Professional to provide details of Resolution Plan considerations, and directing CoC members to submit notarized affidavits

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## Facts

M/s. Vinayak Steels Limited filed an application (IA No. 710/2019) against the Corporate Debtor, M/s. Kumar's Metallurgical Corporation Limited, seeking several reliefs related to the Corporate Insolvency Resolution Process (CIRP). Vinayak Steels, a Resolution Applicant, alleged bias and favoritism by the Committee of Creditors (CoC) and the Resolution Professional (RP). The applicant contended that Prudent ARC Ltd (Respondent 1), a CoC member, had a conflict of interest with Mahalakshmi Profiles Private Limited (Respondent 7), the successful Resolution Applicant. The applicant claimed that Mr. B.C. Ganesh (Respondent 10), a common witness in various agreements, was an employee of Mahalakshmi Profiles and possessed inside information. The applicant also alleged that

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## Issues and analysis

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

**Ratio:** Section 29A of the Insolvency and Bankruptcy Code (IBC) 2016 specifies the categories of

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**Reasoning:** The Adjudicating Authority found that the Applicant had not brought on record any fact or

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**Interpretation:** Section 29A of the IBC aims to prevent certain undesirable persons, such as

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**Application:** In this case, the Applicant alleged that Respondent 7 was ineligible due to a

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## Parties

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

## Timeline

- **2019-02-06 — Publication o…**: Invitation for Expression of Interest for Submission of Resolution Plans by the…
- **2019-04-07 — Deadline for Submission…**: Deadline for submission of Resolution Plan…

## 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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