# In the matter of Xalta Food and Beverages Pvt. Ltd. (IB)-702-ND-2018

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01779. CA 133/2019 was filed as a contempt application by the Operational Creditor. The Corporate…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/xalta-food-and-beverages-pvt-ltd-ib-702-nd-2018-043bd857

## Summary

### Background

CA 133/2019 was filed as a contempt application by the Operational Creditor. The Corporate Debtor had taken the Operational Creditor's premises on rent and continues to possess it during the resolution process. The plant and machinery of the Corporate Debtor installed in the said premises cannot be removed. The applicant is aggrieved because rent has not been paid during the CIR process, causing financial stress.

## Facts

The Operational Creditor filed CA 133/2019 alleging contempt because the Corporate Debtor, Super Print Services V/s. M/s. Xalta Food and Beverages Pvt.Ltd., had rented their premises and continued to occupy it during the resolution process. The Corporate Debtor's plant and machinery remained installed on the premises. The Operational Creditor claimed that the rent was not paid during the CIR process, causing financial stress. Some members of the COC had not contributed to the CIR costs. The court scheduled a further hearing for September 19, 2019, and directed the applicant and RP to take specific actions.

## Issues and analysis

### Issue 1: Whether the claims of COC members who have not …

**Ratio:** The principle of equitable contribution dictates that parties benefiting from a process

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**Reasoning:** The court reasoned that it is necessary and expedient to issue show cause notices to COC

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code

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**Application:** The court applied this principle by directing the issuance of show cause

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## Parties

- **Judges:** L. N. G…; Ina Mal…
- **Appellants:** Kshitij S…
- **Respondents:** Super Print…; Abhishek…
- **Advocates:** Kshitij S…; Mayank M…; +5 more

## Timeline

- **2019-08-26 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-09-19 — Further Consi…**: Case re-notified for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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