# 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-04743. This case involves an application filed under sections 60(5) and other relevant provisions of…

- **Court:** NCLT
- **Order date:** 7 Feb 2023
- **Citation:** TCN-2023-NCLT-04743
- **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-d0d8a8f8

## Summary

### Background

This case involves an application filed 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 to direct 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 the complaint. The complaint was instituted by the respondent, Birla Tyres Ltd., against the applicants for Rs. 1,25,800/- related to the delivery and sale of HSS Hack Blades under a purchase order dated December 21, 2020. The Corporate Debtor, Birla Tyres Ltd., is undergoing a corporate insolvency resolution process initiated by the Tribunal on May 5, 2022. The applicant argued

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## Facts

1. An application was filed under sections 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking certain reliefs.
2. The applicant sought an order directing the respondent to withdraw Complaint Case No. CN/1647 of 2022, filed in the 19th Metropolitan Magistrate at Calcutta.
3. The applicant also sought an order restraining the respondent from pursuing the said complaint.
4. The complaint was instituted by the respondent, Birla Tyres Ltd., for Rs. 1,25,800/- related to the delivery and sale of HSS Hack Blades under a purchase order dated December 21, 2020.
5. The Corporate Debtor, Birla Tyres Ltd., is undergoing a corporate insolvency resolution process initiated by the Tribunal on May 5, 2022.
6. The applicant argued that creditors of the Corporate Debtor had lodged

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal has the jurisdiction to restrain a respondent/corporate …

**Ratio:** The NCLT's jurisdiction is limited and does not extend to restraining parties from

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**Reasoning:** The Tribunal reasoned that the applicant's counsel failed to present any legal provision

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**Interpretation:** The interpretation of Section 60(5) of the IBC is that while it grants broad

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**Application:** In this specific case, the Tribunal found no legal basis to restrain the

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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…**: Date on which the Corporate Insolvency Resolution Process (CIRP) was initiated for Birla…

## 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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