# In the matter of Noble Resourcing Business and Solutions Pvt. Ltd. (IB)-494(PB)-2017

> NCLT judgment dated 2019-04-12. Citation: TCN-2019-NCLT-03924. The case pertains to a Corporate Insolvency Resolution Process (CIRP) under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Apr 2019
- **Citation:** TCN-2019-NCLT-03924
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/noble-resourcing-business-and-solutions-pvt-ltd-ib-494pb-2017-ddb7ae93

## Summary

### Background

The case pertains to a Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. A dispute arose regarding the contribution of financial creditors to the expenses incurred during the CIRP. Specifically, Intec Capital Limited, a financial creditor with a significant voting share (42.78%), objected to contributing to the CIRP costs upfront, proposing to pay only at the end of the recovery process. Other financial creditors, Reliance Commercial Finance Limited and Oriental Bank of Commerce, were allocated voting shares of 25.81% and 31.41%, respectively. The Committee of Creditors (CoC) had decided that the CIRP expenses should be shared proportionately among the three financial creditors.

## Facts

Reliance Commercial Finance Ltd. initiated a CIRP against Noble Resourcing Business And Solutions Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. In the second meeting of the Committee of Creditors (CoC) held on February 12, 2019, it was determined that Intec Capital Ltd., a financial creditor, held 42.78% of the voting share, while Reliance Commercial Finance Limited and Oriental Bank of Commerce held 25.81% and 31.41%, respectively. The CoC decided that the expenses incurred during the CIRP should be shared proportionately among these three financial creditors. However, Intec Capital Limited objected to contributing upfront, stating they would pay at the end of the recovery process. This objection was noted in the minutes of the meeting on

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## Issues and analysis

### Issue 1: Whether a financial creditor can refuse to contribute to the expenses of the Corporate Insolvency …

**Ratio:** The effective continuation of the Corporate Insolvency Resolution Process (CIRP) requires

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**Reasoning:** The court reasoned that if a financial creditor is not inclined to contribute to the cost

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**Interpretation:** This legal issue concerns the interpretation of the Insolvency and Bankruptcy

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**Application:** In this specific case, Intec Capital Limited, a financial creditor, objected to

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## Parties

- **Judges:** M. M. K…; SH. S. K.…
- **Appellants:** Reliance Commercia…
- **Respondents:** Noble Resourcing…
- **Advocates:** Rajeev…; Dewal Tri…

## Timeline

- **2019-02-12 — Second meetin…**: Decision taken that Intec Capital Ltd. has voting share of 42.78%, Reliance Commercial…
- **2019-02-13 — Objection by Intec…**: Intec Capital Limited raised objection to contributing upfront, stating they would pay at…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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