# In the matter of Metallica Industries Ltd. MA 1253-2018 in CP (IB) 1329-I&BP-2017

> NCLT judgment dated 2018-10-29. Citation: TCN-2018-NCLT-00454. The Miscellaneous Application No.1253 of 2018 was filed by the Applicants under Section…

- **Court:** NCLT
- **Order date:** 29 Oct 2018
- **Citation:** TCN-2018-NCLT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metallica-industries-ltd-ma-1253-2018-in-cp-ib-1329-ibp-2017-adcd4b5d

## Summary

### Background

The Miscellaneous Application No.1253 of 2018 was filed by the Applicants under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, on behalf of individuals who purchased units in "Kamla Industrial Park." The applicants purchased these units from Metallica Industries Ltd., now referred to as the "Corporate Debtor." The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an application filed by State Bank of India under Section 7 of the I&B Code, 2016. Mr. Saket Jain was appointed as the Interim Resolution Professional (IRP) to conduct the CIRP. The Applicants filed the application against the actions of the Respondent Resolution Professional, alleging deliberate prevention of the

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## Facts

The Applicants, individuals who purchased units in "Kamla Industrial Park," filed an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, seeking a stay on the Corporate Insolvency Resolution Process (CIRP) initiated against Metallica Industries Ltd. (the Corporate Debtor). The CIRP was initiated following an application by State Bank of India under Section 7 of the I&B Code, 2016. The Applicants alleged that the Resolution Professional was preventing them from participating in the CIRP and sought a declaration that the constitution of the Committee of Creditors (CoC) was illegal. The key fact is that the application was filed before the CoC approved the resolution plan.

## Issues and analysis

### Issue 1: Whether the NCLT can entertain an application under Section 60(5) of the I&B Code, 2016, …

**Ratio:** The Supreme Court in Arcelormittal India Pvt. Ltd. v/s. Satish Kumar Gupta & Ors. has

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**Reasoning:** The court reasoned that allowing such applications before the CoC approves the resolution

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**Interpretation:** Section 60(5) of the I&B Code, 2016, grants the NCLT jurisdiction to

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**Application:** In this case, the Applicants sought a stay on the CIRP and a declaration that

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Mr Sunil Gopichand…
- **Respondents:** Metallica…; Metallica…

## Timeline

- **2018-10-29 — Order del…**: Order delivered on…

## 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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