# In the matter of Shivam Water Treaters Pvt. Ltd. MA 876,1082 & 1241-2019 In CP(IB) 1882(MB)-2018

> NCLT judgment dated 2019-05-09. Citation: TCN-2019-NCLT-03361. The case involves a matter before the National Company Law Tribunal (NCLT), Mumbai Bench,…

- **Court:** NCLT
- **Order date:** 9 May 2019
- **Citation:** TCN-2019-NCLT-03361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivam-water-treaters-pvt-ltd-ma-8761082-1241-2019-in-cpib-1882mb-2018-9f9e5735

## Summary

### Background

The case involves a matter before the National Company Law Tribunal (NCLT), Mumbai Bench, concerning CP(IB) 1882(MB)/2018 and MAs 876/2019, 1082/2019, and 1241/2019. The NCLT had previously imposed costs of Rs. 10 lakhs each on Mr. Gaurav Dave, Ms. Ami Dave, and Mr. Vishal Dave under Section 70 of the Insolvency and Bankruptcy Code (I&B Code), 2016, for which proof of deposit was not received. The order was challenged before the NCLAT, which dismissed the appeal and imposed further costs of Rs. 5,00,000 on each of the Appellants. The NCLAT order specified a 30-day period for depositing the amount from April 22, 2019.

## Facts

The National Company Law Tribunal (NCLT), Mumbai Bench, is hearing a case related to CP(IB) 1882(MB)/2018 and MAs 876/2019, 1082/2019, and 1241/2019. On March 28, 2019, the NCLT imposed costs of Rs. 10 lakhs each on Mr. Gaurav Dave, Ms. Ami Dave, and Mr. Vishal Dave under Section 70 of the Insolvency and Bankruptcy Code (I&B Code), 2016. As of the current hearing, no proof of deposit of the said amount has been received. The order imposing the costs was challenged before the National Company Law Appellate Tribunal (NCLAT), which dismissed the appeal on April 22, 2019, and further imposed costs of Rs. 5,00,000 on each of the Appellants. The NCLAT order provided 30 days from April 22, 2019, for depositing the additional amount. The NCLT notes that the initial penalty

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## Issues and analysis

### Issue 1: Whether Mr. Gaurav Dave, Ms. Ami Dave, and Mr. Vishal Dave should be compelled to deposit the costs …

**Ratio:** The ratio is based on the principle that orders of the court must be obeyed, and failure

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**Reasoning:** The court reasoned that the initial costs imposed under Section 70 of the I&B Code

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**Interpretation:** The interpretation is that the NCLT and NCLAT have the authority to impose

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**Application:** The application is that Mr. Gaurav Dave, Ms. Ami Dave, and Mr. Vishal Dave are

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Respondents:** Shivam Water…

## Timeline

- **2019-03-28 — NCLT Ord…**: NCLT imposed costs of Rs. 10 lakhs each on Mr. Gaurav Dave, Ms. Ami Dave, and Mr. Vishal…
- **2019-04-22 — NCLAT Or…**: NCLAT dismissed the appeal and imposed further costs of Rs. 5,00,000 on each of the…

## 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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