# In the matter of Maruti Cotex Limited

> NCLT judgment dated 2021-03-09. Citation: TCN-2021-NCLT-02760. The case involves an application filed by Shree Siddhivinayak Cotspin Private Limited, the…

- **Court:** NCLT
- **Order date:** 9 Mar 2021
- **Citation:** TCN-2021-NCLT-02760
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maruti-cotex-limited-7632f624

## Summary

### Background

The case involves an application filed by Shree Siddhivinayak Cotspin Private Limited, the Successful Resolution Applicant (SRA) of the Corporate Debtor, M/s Maruti Cotex Limited, against Maharashtra Industrial Development Corporation (MIDC), the third respondent (R3). The Corporate Insolvency Resolution Process (CIRP) was initiated against Maruti Cotex Limited, and a resolution plan was approved. The SRA requested MIDC to issue a 'No Due Certificate' and 'No Objection Certificate' to create a security interest over the Corporate Debtor's factory premises. MIDC refused, claiming outstanding dues, including transfer charges and penalties for late submission of the Building Completion Certificate (BCC). The SRA contends that these charges are illegal and contrary to the

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## Facts

Shree Siddhivinayak Cotspin Private Limited is the Successful Resolution Applicant (SRA) for Maruti Cotex Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) of Maruti Cotex Limited was initiated, and a resolution plan was approved on 2020-07-02. Maharashtra Industrial Development Corporation (MIDC) is a Government of Maharashtra undertaking that leased land to Maruti Cotex Limited. MIDC allotted Plot Nos. T-17 and T-17 (Part) to the Corporate Debtor under a lease agreement dated 2007-03-29, with a pre-determined lease deed dated 2007-12-31, for a term of 95 years. The lease deed required the Corporate Debtor to complete at least 20% of the construction by 2009-06-15. The Corporate Debtor failed to meet this deadline, and MIDC issued a

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction under Section 60(5) of the IBC to adjudicate on the claims made …

**Ratio:** Section 60(5)(c) of the IBC grants the NCLT jurisdiction to decide any question of

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**Reasoning:** The NCLT reasoned that the claims made by MIDC, including transfer fees and penalties,

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**Interpretation:** Section 60(5) is interpreted broadly to encompass any issue that arises in

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**Application:** The NCLT applied this principle to the present case, holding that it has the

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Shree Siddhivinaya…
- **Respondents:** Maruti Cotex…; Sujata Chattopadhy…

## Timeline

- **2007-03-29 — Lease Agr…**: MIDC allotted Plot Nos. T-17 and T-17 (Part) to the Corporate Debtor under a lease…
- **2007-12-31 — Pre-determined Lease…**: Pre-determined lease deed…

## 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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