# In the matter of Birla Tyres Limited IA(IBC)-1708-KB-2022 in C.P (IB) No.250-KB-2021

> NCLT judgment dated 2023-02-07. Citation: TCN-2023-NCLT-04733. This case involves an application under sections 60(5) and other relevant provisions of the…

- **Court:** NCLT
- **Order date:** 7 Feb 2023
- **Citation:** TCN-2023-NCLT-04733
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/birla-tyres-limited-iaibc-1708-kb-2022-in-cp-ib-no250-kb-2021-a5a43cd0

## Summary

### Background

This case involves an application under sections 60(5) and other relevant provisions of the Insolvency and Bankruptcy Code, 2016, read with the National Company Law Tribunal Rules, 2016. The applicant sought orders directing the respondent to withdraw a complaint (Case No. CN/1647 of 2022) filed in the 19th Metropolitan Magistrate at Calcutta and to restrain the respondent from pursuing said complaint. The complaint was instituted by the respondent, Birla Tyres Ltd., against the applicants for Rs. 1,25,800/- on account of delivery and sale of HSS Hack Blades based on a purchase order dated December 21, 2020. The applicant argued that the Corporate Debtor (Birla Tyres Ltd.) is undergoing corporate insolvency resolution process (CIRP) initiated by the Tribunal on May 5,

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## Facts

1. The respondent, Birla Tyres Ltd., filed a complaint (Case No. CN/1647 of 2022) in the 19th Metropolitan Magistrate at Calcutta against the applicants for Rs. 1,25,800/- related to the delivery and sale of HSS Hack Blades, based on a purchase order dated December 21, 2020.
2. The Corporate Debtor, Birla Tyres Ltd., is undergoing a Corporate Insolvency Resolution Process (CIRP) initiated by the NCLT on May 5, 2022.
3. The applicant claims that creditors of the Corporate Debtor have lodged their claims with the Resolution Professional (RP).
4. The applicant contends that filing a criminal complaint for the same amount of money already claimed in the CIRP is an abuse of the process of law and is barred by sections 236(2) and 63 of the IBC.
5. The applicant sought orders

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal (NCLT) has the jurisdiction to restrain a …

**Ratio:** The ratio is that the NCLT's jurisdiction is limited and does not extend to restraining

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**Reasoning:** The court reasoned that no legal provision or authority was presented that would allow

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**Interpretation:** The interpretation is that while the IBC provides a framework for insolvency

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**Application:** The court applied this reasoning to the facts by noting that the applicant

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## Parties

- **Judges:** BIDISHA BA…; Balrarj…
- **Appellants:** Manjushree…
- **Respondents:** Birla Tyre…; M/s Hind Ag…

## Timeline

- **2020-12-21 — Purchase Ord…**: Date of the purchase order for HSS Hack…
- **2022-05-05 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Birla Tyres Ltd. by the…

## 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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