# In the matter of New Phaltan Sugar Works Limited I.A. NO. 1055 OF 2020 in C.P. (IB) No. 2956 OF 2018

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00559. This is an Interlocutory Application filed by Shri. Dutt India Pvt. Ltd. against the Office of…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/new-phaltan-sugar-works-limited-ia-no-1055-of-2020-in-cp-ib-no-2956-of-2018-81e29250

## Summary

### Background

This is an Interlocutory Application filed by Shri. Dutt India Pvt. Ltd. against the Office of the Sugar Commissioner, Maharashtra State. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions to the Sugar Commissioner, Maharashtra State, to remove the entry of the Government of Maharashtra on the 7/12 extracts of New Phaltan Sugar Works Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against New Phaltan Sugar Works Limited, and a resolution plan submitted by Shri. Dutt India Pvt. Ltd. was approved. The applicant seeks the removal of a charge created by the Sugar Commissioner on the Corporate Debtor's land revenue records, which is hindering the implementation of the resolution plan.

## Facts

Shri Dutt India Pvt. Ltd. filed an application against the Office of the Sugar Commissioner, Maharashtra State, seeking the removal of an entry of the Government of Maharashtra on the 7/12 extracts of New Phaltan Sugar Works Limited. The CIRP was initiated against New Phaltan Sugar Works Limited, and Shri Dutt India Pvt. Ltd.'s resolution plan was approved. The applicant had proposed to pay Rs. 67,61,06,870.10/-. The resolution plan included payment of dues to farmers, with admitted claims of Rs. 25,59,49,888/-. The applicant was ordered to furnish a Bank Guarantee of Rs. 5,00,00,000/- to secure the amount payable to the farmers. The Sugar Commissioner had created a charge on Plots bearing GAT Nos. 62/1, 62/2, 62/3A, 62/4, 62/5A, 62/8A, 65/2, 69, 70, 71/1, 74 (11 Gat

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to entertain the application seeking the removal of the …

**Ratio:** Section 60(5) of the Code read with Rule 11 of the NCLT Rules, 2016 empowers the Tribunal

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**Reasoning:** The Tribunal reasoned that the application directly relates to the CIRP of the Corporate

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**Interpretation:** Section 60(5) and Rule 11 provide the NCLT with broad powers to address issues

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**Application:** The Tribunal applied this principle to assert its jurisdiction over the

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## Parties

- **Judges:** Shri. Venkata…; Shri. Shyam Babu…
- **Appellants:** Dutt India Pvt.…
- **Respondents:** New Phaltan Sugar…; Office of the…

## Timeline

- **2018-01-01 — C.P. (IB) No. 2956 OF…**: Company Petition bearing number 2956 of 2018 was filed by one Cosmos Co-Operative Bank…
- **2019-02-22 — Initiation…**: The petition under Section 7 of the Code was admitted by this Tribunal vide an order…

## 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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