# In the matter of Swadisht Oils Pvt Ltd (J. R Agro Industries Pvt Ltd Vs Swadisht Oils Pvt Ltd) CA No. 48-2018 IN CP No. (IB) 13-ALD-2017

> NCLT judgment dated 2018-05-31. Citation: TCN-2018-NCLT-01351. The case revolves around the eligibility of J.R. Agro Industries Pvt. Ltd. (JRAIPL) to be a…

- **Court:** NCLT
- **Order date:** 31 May 2018
- **Citation:** TCN-2018-NCLT-01351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swadisht-oils-pvt-ltd-j-r-agro-industries-pvt-ltd-vs-swadisht-oils-pvt-ltd-ca-no-0debbc27

## Summary

### Background

The case revolves around the eligibility of J.R. Agro Industries Pvt. Ltd. (JRAIPL) to be a resolution applicant for Swadisht Oils Pvt. Ltd. under Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016. The Resolution Professional (RP) filed an application under Section 60(5) of the IBC seeking adjudication on this matter. The corporate insolvency resolution process was initiated against Swadisht Oils Pvt. Ltd., and JRAIPL expressed interest in submitting a resolution plan. The RP raised concerns about JRAIPL's eligibility based on potential disqualifications related to a connected person, Yogendra Kumar Jhunjhunwala (YKJ), and JRAIPL's association with JR Organics Pvt. Ltd., whose account with Punjab National Bank was classified as a Non-Performing Asset (NPA).

## Facts

The Resolution Professional for Swadisht Oils Private Limited applied under Section 60(5) of the Insolvency & Bankruptcy Code, 2016 seeking adjudication of the question of facts and law arising about the eligibility of one of the resolution applicants under Section 29A of the IBC, 2016. An order dated 30 May 2017 admitted a petition filed under section 9 of the Insolvency & Bankruptcy Code against the corporate debtor. J.R. Agro Industries Private Limited (JRAIPL) submitted an expression of interest. JRAIPL submitted an affidavit Dt. 5 January 2018 certifying that it is eligible as a resolution applicant under section 29 A of the IBC 2016. JRAIPL was allowed to submit the complete financial statements with the Resolution Plan on 19 January 2018. Yogendra Kumar

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## Issues and analysis

### Issue 1: Whether J.R. Agro Industries Pvt. Ltd. (JRAIPL) is eligible to be a resolution applicant for …

**Ratio:** Section 29A of the IBC disqualifies individuals or entities connected to those who are

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**Reasoning:** The court reasoned that YK Jhunjhunwala is a 'connected person' of JR Agro and is

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**Interpretation:** Section 29A aims to prevent individuals or entities with a history of financial

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**Application:** The court applied the provisions of Section 29A to the facts of the case,

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## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Appellants:** J.R. Agro…
- **Respondents:** Swadisht Oils Pvt…

## Timeline

- **2017-05-30 — Petition Ad…**: Petition filed under section 9 of the Insolvency & Bankruptcy Code has been admitted…
- **2018-01-05 — Affidavit Sub…**: JRAIPL submitted an affidavit certifying its eligibility as a resolution applicant under…

## 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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