# In the matter of Roofit Industries Limited C.P.(IB)- 1055/(MB)/2017 MA 205/2020 MA 241/2020 MA 242/2020 MA 282/2020

> NCLT judgment dated 2020-01-24. Citation: TCN-2020-NCLT-02189. The case involves an application filed by the Liquidator of Roofit Industries Limited to quash…

- **Court:** NCLT
- **Order date:** 24 Jan 2020
- **Citation:** TCN-2020-NCLT-02189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/roofit-industries-limited-cpib-1055mb2017-ma-2052020-ma-2412020-ma-2422020-ma-28-06ebecb6

## Summary

### Background

The case involves an application filed by the Liquidator of Roofit Industries Limited to quash Civil Suit No. 251/2019 filed by Mr. E.C. John in the Civil Court Junior Division, Wada District Palghar. Mr. John, who was previously the occupant of the Corporate Debtor, filed the suit seeking a prohibitory injunction to restrain the Liquidator from disturbing his possession of the property. The Corporate Debtor was undergoing CIRP, and later liquidation orders were passed. Mr. John had also expressed interest in purchasing the property but his offer was not considered due to being below market value. The Liquidator proceeded to sell the property to third parties.

## Facts

Roofit Industries Limited was undergoing CIRP, and Mr. Jitendra Kumar Jain was appointed as IRP and later became RP. Subsequently, liquidation orders were passed. Mr. E.C. John, who was the occupant of the Corporate Debtor, filed Civil Suit No. 251/2019 seeking a prohibitory injunction against the Liquidator. Mr. John had previously expressed interest in purchasing the property of the Corporate Debtor but his offer was not accepted. The Liquidator sold the property to third parties. Mr. John then approached the civil court seeking direction or decree for grant of prohibitory injunction. Mr. John also claimed to have constructed a wall around the property. The Liquidator informed the court that Mr. John had threatened him. The relevance of these facts is that they

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## Issues and analysis

### Issue 1: Whether the civil suit filed by Mr. E.C. John is maintainable given the provisions of the …

**Ratio:** Section 33(5) of the IBC, 2016, explicitly bars any suit that seeks to disturb the

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**Reasoning:** The court reasoned that Mr. John's civil suit was an attempt to obstruct the liquidation

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**Interpretation:** Section 33(5) is interpreted to provide a protective shield to the liquidation

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**Application:** The court applied Section 33(5) to the facts of the case, finding that Mr.

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## Parties

- **Judges:** Bhaskara Pantula…
- **Appellants:** Liquidator of…
- **Respondents:** Roofit Industries…; E.C.…
- **Advocates:** Ajay Fern…

## Timeline

- **2019-01-01 — Civil Suit…**: Mr. E.C. John filed Civil Suit No. 251/2019 in the Civil Court Junior Division, Wada…
- **2018-10-09 — Letter to Liq…**: Mr. E.C. John wrote a letter to the liquidator evincing keen interest in purchasing the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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