# In the matter of Balaji Paper & Newsprint Private Limited

> NCLT judgment dated 2024-04-10. Citation: TCN-2024-NCLT-01762. The application I.A. (IB) No. 471/KB/2024 was filed in C.P. (IB) No. 1540/KB/2019 by Jai…

- **Court:** NCLT
- **Order date:** 10 Apr 2024
- **Citation:** TCN-2024-NCLT-01762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/balaji-paper-newsprint-private-limited-f00864f9

## Summary

### Background

The application I.A. (IB) No. 471/KB/2024 was filed in C.P. (IB) No. 1540/KB/2019 by Jai Kishore Gupta, an operational creditor, seeking the recall of an order dated 2024-01-12, where the NCLT approved a resolution plan for the corporate debtor, Balaji Paper and Newsprint Private Limited. The applicant also sought to declare the entire CIRP void, constitute a new CoC, obtain certified copies of the resolution plan and CoC meeting minutes, and direct an investigation by a central agency like SFIO. The applicant alleged undervaluation of the corporate debtor's assets, failure to invoke personal and corporate guarantees, and transfer of assets by personal guarantors after the commencement of CIRP.

## Facts

Balaji Paper and Newsprint Private Limited, the corporate debtor, was engaged in manufacturing and supplying craft paper and printing paper. Jai Kishore Gupta, the applicant, is an operational creditor involved in selling wastepaper, including to the corporate debtor. The corporate debtor failed to clear invoices worth Rs. 9,65,35,795/- to the applicant. The applicant, as a partner in Eastern Agencies, also had an admitted claim of Rs. 1,75,49,488/-. The resolution plan was approved with 100% voting share, providing only Rs. 10 Lakhs against an admitted combined claim of Rs. 11,36,85,243/- of the applicant and other operational debts totalling Rs. 43,84,80,083/-, representing only 0.23% of the admitted claim. The applicant alleged that the respondent deliberately

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## Issues and analysis

### Issue 1: Whether the approved resolution plan should be recalled due to undervaluation of the corporate …

**Ratio:** The valuation of the Corporate Debtor cannot be challenged at this stage by anyone when

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**Reasoning:** The court reasoned that the applicant had not provided any basis for challenging the

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**Interpretation:** This legal issue concerns the validity of challenging the valuation of a

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**Application:** In this case, the applicant challenged the valuation of the corporate debtor,

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Jai Kishore…
- **Respondents:** Balaji Paper and…; Rachna Jhunjhunwal…

## Timeline

- **2019-01-01 — Initiation…**: CIRP initiated against Balaji Paper and Newsprint Private Limited via C.P. (IB) No.…
- **2024-01-12 — Approval of Resolution…**: NCLT approved the Resolution Plan presented before it in I.A./1842/KB/2023 in C.P. No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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