# In the matter of Empee Distilleries Limited IA-889-IB-2020 in CP-280-IB-2018

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02923. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02923
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/empee-distilleries-limited-ia-889-ib-2020-in-cp-280-ib-2018-fb561f4c

## Summary

### Background

The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, by the Resolution Professional of M/s. Empee Distilleries Limited (Corporate Debtor). The Resolution Professional sought directions for the 1st Respondent to release the charge on the corporate debtor's property mortgaged with them and to hand over the original title deeds. The CIRP was initiated following an application under Section 7 of IBC, 2016, by Union Bank of India, with an order dated 01.11.2018. The Resolution Professional was appointed to manage the affairs of the Corporate Debtor. The 2nd Respondent's Resolution Plan was approved by the CoC and the Adjudicating Authority.

## Facts

M/s. Empee Distilleries Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Union Bank of India. S. Rajendran was appointed as the Resolution Professional. Global Coal Ventures Private Limited (1st Respondent) held a mortgage on the Corporate Debtor's property. The Resolution Professional submitted that the Corporate Debtor had purchased a land admeasuring to 13.05 acres comprised in various Survey Nos. situated at Thurapallam Village under a Sale Deed dated 15.04.2002. The Resolution Plan of SNJ Distillers Private Limited (2nd Respondent) was approved. The 1st Respondent did not submit any claim during the CIRP. The Resolution Professional argued that the mortgage should be released and the title deeds handed over, as per the approved

…

## Issues and analysis

### Issue 1: Whether the 1st Respondent is required to be directed to cancel the mortgage created in its favour …

**Ratio:** The principle that a successful resolution applicant cannot suddenly be faced with

…

**Reasoning:** The Tribunal reasoned that the 1st Respondent's failure to submit a claim during the CIRP

…

**Interpretation:** The interpretation is that the IBC aims to provide a clean slate to the

…

**Application:** The Tribunal applied the principle by directing the 1st Respondent to cancel

…

## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** S. Rajendran,…
- **Respondents:** M/s. Empee…; M/s. Global Coal…
- **Advocates:** N.P. Viia…; Savitha…; +2 more

## Timeline

- **2018-11-01 — CIRP Init…**: CIRP initiated against M/s. Empee…
- **2018-12-13 — RP Appoin…**: Resolution Professional…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/empee-distilleries-limited-ia-889-ib-2020-in-cp-280-ib-2018-fb561f4c