# In the matter of Autopal Industries Limited

> NCLT judgment dated 2024-06-07. Citation: TCN-2024-NCLT-01209. The case involves an application (IA No. 352/JPR/2023) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 7 Jun 2024
- **Citation:** TCN-2024-NCLT-01209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/autopal-industries-limited-0566a74c

## Summary

### Background

The case involves an application (IA No. 352/JPR/2023) filed by the Resolution Professional (RP) of M/s Autopal Industries Limited ('Corporate Debtor') under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IBC') read with Regulations 31 and 34 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('CIRP Regulations'). The application seeks payment/contributions towards the unpaid Interim Resolution Professional (IRP) costs and expenses from the respondents, namely Reliance Commercial Finance Limited, Paisalo Digital Limited, and the legal heir of Late Sh. Bhagwant Das Solanki. The CIRP was initiated following an application filed by M/s Tack Innovations ('Operational Creditor') under Section

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## Facts

M/s Tack Innovations initiated CIRP against M/s Autopal Industries Limited, leading to the appointment of Ajay Gupta as the Interim Resolution Professional (IRP) on 16.08.2022. A public announcement was made on 28.08.2022, inviting creditors to submit their claims. Initially, only Reliance Commercial Finance Limited and Bhagwant Singh Solanki (later represented by legal heirs) submitted claims, forming the Committee of Creditors (CoC). Ajay Gupta was appointed as the Resolution Professional (RP) in the first CoC meeting on 24.09.2022. Paisalo Digital Limited later submitted a claim. The RP categorized Reliance and Paisalo as 'Other Creditors' due to their claims being based on an Arbitral Award, but the Adjudicating Authority directed them to be included as Financial

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## Issues and analysis

### Issue 1: Whether the respondents are liable to pay the unpaid Interim Resolution Professional (IRP) costs …

**Ratio:** Regulation 34 of the CIRP Regulations stipulates that the committee shall fix the

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**Reasoning:** The Adjudicating Authority considered the statutory provisions and regulations related to

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**Interpretation:** The legal issue involves the interpretation of the IBC and CIRP Regulations

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**Application:** The ratio and reasoning are applied to the specific facts of the case by

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Ajay G…
- **Respondents:** M/S AUTOPAL…; Reliance Commercia…
- **Advocates:** Milan Sing…; Manish Pa…; +3 more

## Timeline

- **2018-01-01 — CP No. (IB)- 47/9/JPR/20…**: Related to the main…
- **2022-08-16 — Appointment…**: Mr. Ajay Gupta appointed as Interim…

## 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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