# In the matter of Uttam Strips Ltd. (Power2SME Pvt. Ltd. Vs. Uttam Strips Ltd.) (IB)-137-(ND)-2018

> NCLT judgment dated 2018-07-03. Citation: TCN-2018-NCLT-01213. The case involves an application (CA 226 of 2018) filed by the Operational Creditor, seeking…

- **Court:** NCLT
- **Order date:** 3 Jul 2018
- **Citation:** TCN-2018-NCLT-01213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uttam-strips-ltd-power2sme-pvt-ltd-vs-uttam-strips-ltd-9bb36c02

## Summary

### Background

The case involves an application (CA 226 of 2018) filed by the Operational Creditor, seeking reimbursement of expenses incurred in initiating the Resolution Process. The application requests that these expenses be considered by the Resolution Professional (RP) when calculating the Corporate Insolvency Resolution Process (CIRP) costs. The court notes that an interim report has been filed by the RP detailing the steps taken in the Resolution Process, with a further interim report due by August 31, 2018. The bench was also informed that the previous RP/IRP, while setting up a new email ID, had passed on information but not the password, which the current IRP is directed to provide.

## Facts

Power2SME Pvt. Ltd. is involved in a case against Uttam Strips Ltd. The Operational Creditor filed an application (CA 226 of 2018) seeking reimbursement for expenses incurred in initiating the Resolution Process. The Resolution Professional (RP) has filed an interim report detailing the steps taken in the Resolution Process. A further interim report is due by August 31, 2018. The previous RP/IRP passed on information related to a new email ID but did not provide the password. The current IRP is directed to provide the password to the email ID.

## Issues and analysis

### Issue 1: Whether the expenses incurred by the Operational Creditor in initiating the Resolution Process …

**Ratio:** The principle is that expenses reasonably incurred in initiating the resolution process

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**Reasoning:** The court acknowledges the Operational Creditor's application seeking reimbursement of

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**Interpretation:** This issue involves interpreting the provisions related to CIRP costs under the

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**Application:** The court will need to determine whether the expenses claimed by the

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## Parties

- **Judges:** Ina Mal…
- **Respondents:** Power2SME Pvt.…; Uttam Strip…

## Timeline

- **2018-07-03 — Hearing…**: Hearing before the New Delhi Bench of…
- **2018-01-01 — Filing of CA 22…**: CA 226 of 2018 filed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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