# In the matter of Cema Electric Lighting Products India Private Limited

> NCLT judgment dated 2025-02-14. Citation: TCN-2025-NCLT-00489. The case involves an application filed by GE Employees Union, Trade Union of M/s. Cema Electric…

- **Court:** NCLT
- **Order date:** 14 Feb 2025
- **Citation:** TCN-2025-NCLT-00489
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cema-electric-lighting-products-india-private-limited-af070eab

## Summary

### Background

The case involves an application filed by GE Employees Union, Trade Union of M/s. Cema Electric Lighting Products India Pvt Ltd, seeking intervention in CP/IB/173(CHE)/2023 under Section 9 read with Section 60(5) of the Insolvency and Bankruptcy Code (IBC). CIRP was initiated against the Corporate Debtor, Cema Electric Lighting Products Pvt Ltd, based on an application filed by M/s. Overdrive Electronics Pvt Ltd. The IRP was appointed and a public announcement was made to invite claims from creditors. The Suspended Director of the Corporate Debtor appealed to NCLAT, which quashed the CIRP order and remitted the application back to the Tribunal. The operational creditor then appealed to the Supreme Court, which directed the Tribunal to pass an order on merits. An

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## Facts

GE Employees Union filed an application seeking intervention in the CIRP of Cema Electric Lighting Products India Private Limited. Overdrive Electronics initiated CIRP against Cema Electric Lighting Products under Section 9 of IBC. An IRP was appointed, and a public announcement was made. The NCLAT quashed the CIRP order, but the Supreme Court directed the Tribunal to pass an order on merits. An industrial dispute arose between Cema Electric Lighting Products and its workmen, leading to the closure of the unit on 19.01.2018 and non-payment of salaries since February 2018. A settlement was reached with the Union, and a MoU was entered into with SM Enterprises for the sale of property. The Union had a voting share of 83.26% in the CoC. The debt owed to Overdrive

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## Issues and analysis

### Issue 1: Whether the Applicant should be permitted to intervene in the application filed under Section 9 of …

**Ratio:** The IBC provides for the filing of claims by the Applicant/Trade Union in respect of its

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**Reasoning:** The Tribunal reasoned that since the IBC already provides a mechanism for the

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**Interpretation:** The interpretation is that the IBC's framework is designed to allow creditors,

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

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** GE Employees…
- **Respondents:** Cema Electric…; M/s. Overdrive…

## Timeline

- **2017-08-24 — Rejection of Ap…**: The Corporate Debtor's application under the Industrial Dispute Act 1947 for the closure…
- **2018-01-19 — Closure of…**: The Corporate Debtor stopped its units due to financial losses and disconnection of…

## 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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