# In the matter of Modinagar Paper Mills Ltd. CP No. (IB)391-ALD-2018

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00257. The case involves a company petition under the Insolvency and Bankruptcy Code (IBC). The…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/modinagar-paper-mills-ltd-cp-no-ib391-ald-2018-ab0008cd

## Summary

### Background

The case involves a company petition under the Insolvency and Bankruptcy Code (IBC). The Operational Creditor failed to appear in court despite multiple opportunities. The matter was called on 13.09.2021 and 09.11.2021, and on the latter date, an opportunity was given to the counsel for the Operational Creditor to appear. However, they failed to do so, leading to a record that the matter would be dismissed for non-prosecution.

## Facts

The case pertains to a company petition filed under the Insolvency and Bankruptcy Code (IBC). The key fact is the repeated absence of representation from the Operational Creditor during court proceedings. The matter was called on 13.09.2021 and 09.11.2021. On 09.11.2021, the court provided an opportunity for the Operational Creditor's counsel to appear. Despite this opportunity, no representation was made on behalf of the Operational Creditor. This absence led the court to conclude that the Operational Creditor was not interested in pursuing the petition. The relevance of these facts lies in demonstrating the Operational Creditor's lack of diligence and the subsequent dismissal of the case due to non-prosecution.

## Issues and analysis

### Issue 1: Whether the company petition should be dismissed for non-prosecution due to the repeated absence of …

**Ratio:** The legal principle applied is that a case can be dismissed for non-prosecution if the

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**Reasoning:** The court reasoned that the Operational Creditor's repeated absence, despite being given

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**Interpretation:** The interpretation of the law is that parties involved in legal proceedings

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**Application:** In this specific case, the ratio and reasoning were applied to the fact that

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Respondents:** M/s Modi Nagar…; Kotak Mahindra…

## Timeline

- **2021-09-13 — Matter C…**: The matter was…
- **2021-11-09 — Opportunity…**: Opportunity was given to the counsel for…

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