# In the matter of Paragon Steel Private Limited IBA-80-2019 In CP-553-IB-2017

> NCLT judgment dated 2019-02-25. Citation: TCN-2019-NCLT-04699. The case involves an application (MA/80/2019) filed by the Applicants, M/s. Regal Trading and…

- **Court:** NCLT
- **Order date:** 25 Feb 2019
- **Citation:** TCN-2019-NCLT-04699
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paragon-steel-private-limited-iba-80-2019-in-cp-553-ib-2017-95ea8431

## Summary

### Background

The case involves an application (MA/80/2019) filed by the Applicants, M/s. Regal Trading and others, stating that they supplied scrap to the Corporate Debtor, M/s. Paragon Steels Private Limited, during the CIRP period. However, their claims were rejected by the Resolution Professional (RP). The Applicants filed the application assailing the rejection of their claims after more than six months from the date of the approval of the Resolution Plan.

## Facts

M/s. Regal Trading and others (Applicants) supplied scrap to M/s. Paragon Steels Private Limited (Corporate Debtor) during the Corporate Insolvency Resolution Process (CIRP) period. The Resolution Professional (RP) rejected the claims of the Applicants. The Resolution Plan was approved on 24.07.2018. The Applicants filed an application (MA/80/2019) assailing the rejection of their claims more than six months after the approval of the Resolution Plan. The Applicants had previously attempted to acquire the Corporate Debtor through a Resolution Plan, which was rejected. The RP argued that the Applicants are actually debtors to the Corporate Debtor. The CoC considered all aspects and concluded that the applicants acted in concert with the promoters of the corporate debtor.

## Issues and analysis

### Issue 1: Whether the application filed by the Applicants assailing the rejection of their claims is …

**Ratio:** Once a Resolution Plan is approved, it is deemed that all claims pending against the

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**Reasoning:** The court reasoned that the application was filed after a significant delay, more than

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**Interpretation:** The legal principle is that once a resolution plan is approved, all claims are

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**Application:** The court applied this principle to the facts, noting that the applicants'

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s. Regal…
- **Respondents:** M/s. Paragon…; Shri. R. Venkatakr…

## Timeline

- **2019-01-02 — Filing of MA/…**: The Applicants filed MA/80/2019 stating that they supplied scrap to the Corporate Debtor…
- **2018-07-24 — Approval of Resolution…**: The Resolution Plan for the…

## 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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