# In the matter of Man Industries (India) Limited CP No. 170-I&BC-NCLT-MB-NCLT-2017

> NCLT judgment dated 21 Sept 2017. Citation: TCN-2017-NCLT-00384. The petitioners, Jagdishchandra Mansukhani & Ors., filed an application under Sections 8 and…

- **Court:** NCLT
- **Order date:** 21 Sept 2017
- **Citation:** TCN-2017-NCLT-00384
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/man-industries-india-limited-cp-no-170-ibc-nclt-mb-nclt-2017-96e1016a

## Summary

### Background

The petitioners, Jagdishchandra Mansukhani & Ors., filed an application under Sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against Man Industries Limited (the corporate debtor) for an alleged operational debt. The debt pertained to unpaid dividends declared by the corporate debtor on December 28, 2015, along with interest. The petitioners initially submitted a form on March 7, 2017, stating an outstanding operational debt of ₹1,64,23,918/-, but it lacked the corporate debtor's name. A revised form was submitted on August 7, 2017, clarifying the corporate debtor as Man Industries (India) Limited and the operational debt as a total dividend amount of ₹1,58,27,061/-.

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## Facts

A requisite Form was initially submitted on March 7, 2017, by the petitioners, Jagdishchandra Mansukhani & Ors., claiming an outstanding 'Operational Debt' of ₹1,64,23,918/-. However, the name of the Corporate Debtor was inadvertently omitted from the form. The petitioners subsequently corrected this error and submitted a revised form on August 7, 2017, which clearly identified Man Industries (India) Limited as the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the non-payment of declared dividends constitutes an 'Operational Debt' under the…

**Ratio:** The court's ratio implicitly suggests that even if a debt could be classified as…

**Reasoning:** The court did not directly rule on whether non-payment of dividends constitutes an…

**Interpretation:** The court interpreted the provisions of the IBC, particularly Sections 8 and 9,…

**Application:** The court did not apply the definition of 'operational debt' to dividends in…

## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Advocates:** For the Petitioner…; Sayalee Ku…; +4 more

## Timeline

- **March 7, 2017 — Initial Form S…**: Petitioners submitted a form claiming an outstanding 'Operational Debt' but omitted the…
- **August 7, 2017 — Revised Form S…**: Petitioners submitted a revised form, correcting the Corporate Debtor's name and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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