# In the matter of Solidaire India LImited MA-531-2019 in CP-977-IB-2018

> NCLT judgment dated 2019-07-05. Citation: TCN-2019-NCLT-02646. The case involves an MA filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Jul 2019
- **Citation:** TCN-2019-NCLT-02646
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solidaire-india-limited-ma-531-2019-in-cp-977-ib-2018-6abce4da

## Summary

### Background

The case involves an MA filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, by the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), a financial creditor, challenging the rejection of its claim of ₹31.50 Crores by the Resolution Professional. The rejection was based on the claim being time-barred. The Corporate Debtor, Solidaire India Limited, had availed a loan facility from SUUTI and ICICI Bank. ICICI Bank later assigned its debt to M/s. International Asset Reconstruction Company (IARC). A charge was created with the RoC in 1989. In 1997, the matter went for reference before BIFR, which was rejected by AIFR. The Corporate Debtor then filed a Writ Petition before the Delhi High Court, which was initially stayed but later

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## Facts

The Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) filed an application challenging the rejection of its claim of ₹31.50 Crores by the Resolution Professional (RP) of Solidaire India Limited. The RP rejected the claim on the ground that it was time-barred. Solidaire India Limited had availed a loan facility from SUUTI and ICICI Bank. ICICI Bank assigned its debt to M/s. International Asset Reconstruction Company (IARC). A charge was created with the RoC in 1989. The matter was previously referred to BIFR, which was rejected by AIFR, leading to a Writ Petition before the Delhi High Court, which was eventually dismissed. ICICI Bank initiated action under Section 13(2) of the SARFAESI Act after obtaining consent from UTI under Section 3(9)

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the claim of the Administrator of …

**Ratio:** A claim should not be rejected as time-barred if the liability is consecutively and

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**Reasoning:** The court reasoned that because the debt liability payable to UTI was still shown as a

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**Interpretation:** This interprets the provisions of the Insolvency and Bankruptcy Code, 2016,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** The Administrator…
- **Respondents:** M/s. Solidaire…
- **Advocates:** S. R…; M.Sathi…; +2 more

## Timeline

- **1989-04-18 — Charge Cr…**: A charge was created with RoC for a sum…
- **1997-01-01 — Reference t…**: The matter went for…

## 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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