# In the matter of Zapp India Ltd. IB-344(ND)-2018

> NCLT judgment dated 2018-06-13. Citation: TCN-2018-NCLT-01273. The case involves a petition filed by M/s. Maheshwar Textiles, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 13 Jun 2018
- **Citation:** TCN-2018-NCLT-01273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zapp-india-ltd-ib-344nd-2018-41b5a489

## Summary

### Background

The case involves a petition filed by M/s. Maheshwar Textiles, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Zapp India Ltd., the Corporate Debtor, due to its inability to pay outstanding dues. The claim is based on an arbitral award dated 2009-08-19 in favor of the Operational Creditor, directing the Corporate Debtor to pay Rs. 52,63,214 with 18% interest from 2009-08-20. Objections to the award were dismissed by the Bombay High Court on 2012-10-23. The Operational Creditor had previously filed a winding-up petition in the Rajasthan High Court, which was then converted to an IBC petition following the notification of the IBC, 2016.

## Facts

M/s. Maheshwar Textiles, the Operational Creditor, filed a petition under Section 9 of the IBC against M/s. Zapp India Ltd., the Corporate Debtor, for failing to pay outstanding dues. The claim is based on an arbitral award dated 2009-08-19, which ordered the Corporate Debtor to pay Rs. 52,63,214 with 18% interest from 2009-08-20. The Corporate Debtor's objections to the award were dismissed by the Bombay High Court on 2012-10-23. The Operational Creditor had previously filed a winding-up petition in the Rajasthan High Court, which was converted to an IBC petition. The Corporate Debtor raised objections regarding the eligibility of the initially proposed IRP, Ms. Prathiba Khandelwal, citing a complaint and show cause notice. The Operational Creditor then proposed Mr.

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## Issues and analysis

### Issue 1: Whether the objections raised by the Corporate Debtor regarding the eligibility of the proposed …

**Ratio:** The naming of an IRP is a procedural aspect and not a substantive dispute related to the

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**Reasoning:** The court reasoned that the objections regarding the IRP's eligibility did not relate to

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**Interpretation:** The court interpreted the IBC provisions related to the appointment of IRPs as

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**Application:** The court applied this reasoning to the specific facts by finding that the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Respondents:** M/s. Zapp India…; M/s Maheshwar…

## Timeline

- **2009-08-19 — Arbitral…**: An arbitral award was passed in favor of the Operational Creditor, directing the…
- **2009-08-20 — Interest A…**: Interest on the arbitral award…

## 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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