# In the matter of Fedders Electric and Engineering Ltd.

> NCLT judgment dated 2023-09-26. Citation: TCN-2023-NCLT-01476. In IA No. 156/2022, INOX WIND LTD. filed an application under Section 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 26 Sept 2023
- **Citation:** TCN-2023-NCLT-01476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fedders-electric-and-engineering-ltd-d1b64653

## Summary

### Background

In IA No. 156/2022, INOX WIND LTD. filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the release of remaining materials (loosed materials like plates, flanges, internal parts, fasteners, frames, clamps, segments, and ladders) laying in the Jambusar Bharuch plant of the Corporate Debtor, valued at Rs. 1,36,00,000/-, and to reconcile the accounts for the rest of the raw MS plates laying in the Bharuch factory, worth around Rs. 5,77,00,000/-. INOX WIND LTD. had been placing orders with the Corporate Debtor since 2016 for fabrication of towers and other equipment, providing the raw material. The Corporate Debtor entered the CIR Process on August 14, 2019. The Resolution Plan was approved on October 6, 2021, and the Successful

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## Facts

INOX WIND LTD. (Applicant) filed an application seeking the release of certain materials (plates, flanges, internal parts, fasteners, frames, clamps, segments, and ladders) laying in the Jambusar Bharuch plant of FEDDERS ELECTRIC & ENGINEERING LTD. (Corporate Debtor). The materials were valued at Rs. 1,36,00,000/-. INOX WIND LTD. also sought reconciliation of accounts for raw MS plates worth Rs. 5,77,00,000/-. INOX WIND LTD. had been placing orders with the Corporate Debtor since 2016 for the fabrication of towers and other equipment, providing the raw material. The Corporate Debtor entered the CIR Process on August 14, 2019. A Resolution Plan was approved on October 6, 2021, and the Successful Resolution Applicant took over control on February 21, 2022. INOX WIND

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## Issues and analysis

### Issue 1: Whether the application filed by INOX WIND LTD. under Section 60(5) of the Insolvency and …

**Ratio:** Section 60(5) of the Insolvency and Bankruptcy Code, 2016, provides the Adjudicating

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**Reasoning:** The Tribunal reasoned that the CIRP had commenced, a Resolution Plan had been approved,

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**Interpretation:** The interpretation of Section 60(5) in the context of an ongoing CIRP and an

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**Application:** In this case, the Tribunal applied the ratio by determining that the dispute

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Inox Wind…
- **Respondents:** Fedders Electric…

## Timeline

- **2016-01-01 — Orders P…**: INOX WIND LTD. started placing orders with the Corporate Debtor for fabrication of towers…
- **2018-03-20 — Last Purchas…**: Date of the last purchase order, with a…

## 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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