# in the matter of Duncans Industries Ltd.

> NCLT judgment dated 2024-04-26. Citation: TCN-2024-NCLT-01560. The application was preferred by Trinamool Cha Bagan Sramik Union under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-NCLT-01560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/duncans-industries-ltd-5da5c14b

## Summary

### Background

The application was preferred by Trinamool Cha Bagan Sramik Union under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a stay on the approval of the Resolution Plan being I.A (I.B.C)/237(KB) of 2022 until the disposal of a complaint filed by the applicant against the Respondent with the IBBI dated 24th January 2023. The applicant contended that UniGlobal Papers Private Limited is the Successful Resolution Applicant (SRA) for the Corporate Debtor, but the Resolution Plan is pending approval. The applicant alleged that the Resolution Professional is acting in collusion with the SRA, allowing them to treat tea gardens as assets and enter into agreements for consideration. They also alleged that the Resolution Professional applied for a duplicate

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## Facts

Sangita Fiscal Services Pvt. Ltd & Ors is the Financial Creditor/Applicant. Duncans Industries Ltd is the Corporate Debtor/Respondent. Trinamool Cha Bagan Sramik Union filed an application as the Applicant. Ram Ratan Modi is the Resolution Professional/Respondent. UniGlobal Papers Private Limited is the Successful Resolution Applicant (SRA). The applicant sought a stay on the approval of the resolution plan. The applicant alleged collusion between the Resolution Professional and the SRA. The applicant claimed that leasehold interests of the Corporate Debtor had expired. The resolution plan submitted by Uniglobal Papers Private Limited was approved by the COC with a 99.20% majority on 24.02.2022. The application was filed on 09.02.2023, almost a year after the

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## Issues and analysis

### Issue 1: Whether the application for a stay on the approval of the resolution plan is maintainable given the …

**Ratio:** An application for stay is generally not maintainable if there is a significant delay

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**Reasoning:** The court reasoned that the resolution plan had already been approved by the COC with a

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**Interpretation:** The legal principle is that timely action is crucial in insolvency proceedings.

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**Application:** In this case, the court applied the principle of timely action. The significant

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## Parties

- **Judges:** BIDISHA BA…; SHRI. BALRA…
- **Appellants:** Trinamool Cha…
- **Respondents:** Duncans Industries…

## Timeline

- **2022-02-24 — Resolution Plan…**: The resolution plan submitted by Uniglobal Papers Private Limited was approved by the COC…
- **2023-01-24 — Complaint Filed with…**: The applicant filed a complaint…

## 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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