# In the matter of Senthil Papers and Boards Private Limited MA-610-2018 In CP-612-IB-2017

> NCLT judgment dated 2019-02-14. Citation: TCN-2019-NCLT-04846. The case involves an application filed under Section 60(5) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Feb 2019
- **Citation:** TCN-2019-NCLT-04846
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/senthil-papers-and-boards-private-limited-ma-610-2018-in-cp-612-ib-2017-57fd7f90

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016. The Committee of Creditors (CoC) rejected the applicant's resolution plan, deeming it commercially unviable. The applicant then assailed the CoC's decision, leading to the present matter before the National Company Law Tribunal (NCLT).

## Facts

Vijayalakshmi Industries Private Limited filed an application challenging the rejection of its resolution plan by the Committee of Creditors (CoC) of Senthil Papers and Boards Private Limited. The CoC rejected the plan because it was deemed commercially unviable. The applicant, Vijayalakshmi Industries, argued against the CoC's decision. The NCLT considered the application, referencing the Insolvency & Bankruptcy Code, 2016, and a Supreme Court judgment (K. Sashidhar vs. Indian Overseas Bank) that limits the NCLT's ability to interfere with the CoC's commercial decisions. The key fact is the CoC's rejection of the resolution plan based on commercial non-viability, which triggered the legal challenge.

## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to scrutinize the commercial decision of the Committee of …

**Ratio:** The NCLT and NCLAT do not have the jurisdiction or authority to analyze or evaluate the

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**Reasoning:** The court relied on the Supreme Court's judgment in K. Sashidhar vs. Indian Overseas

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**Interpretation:** This interpretation emphasizes the legislative intent behind the I&B Code,

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**Application:** In this case, the NCLT applied the ratio by acknowledging that it could not

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** V. JAYALAKSHMI…
- **Respondents:** Senthil Papers…; SENTHIL PAPERSE…
- **Advocates:** V.D. Ka…; R. Vidhya S…; +3 more

## Timeline

- **2018-01-01 — Application…**: MA/610/2018 filed by the…
- **2017-01-01 — Petition…**: CP/612/IB/201…

## 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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