# In the matter of Fort Gloster Industries Limited I.A. (IB) No.164 of 2021 in C.P. (IB) No.61-KB-2018

> NCLT judgment dated 2022-02-10. Citation: TCN-2022-NCLT-04194. This is an Interlocutory Application filed under section 60 (5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Feb 2022
- **Citation:** TCN-2022-NCLT-04194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fort-gloster-industries-limited-ia-ib-no164-of-2021-in-cp-ib-no61-kb-2018-9d86f56e

## Summary

### Background

This is an Interlocutory Application filed under section 60 (5) of the Insolvency and Bankruptcy Code, 2016 by Orbit Udyog Private Limited against Fort Gloster Industries Limited, seeking directions on the Resolution Professional of the Corporate Debtor to deliver or allow the lifting/selling of machineries described in the application, and a declaration that these machineries are not subject to moratorium. The applicant claims ownership of the machineries based on a lease finance agreement from 1995 and subsequent transfer of ownership in 2003. The corporate debtor had taken machineries on lease finance from NICCO UCO Alliance Credit Limited (‘NICCO'). Subsequently, in 2003 the ownership of the same machineries was transferred to the Applicant at residual value. The

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## Facts

In 1995, Fort Gloster Industries Limited (Corporate Debtor) acquired machineries through lease finance from NICCO UCO Alliance Credit Limited (NICCO). In 2003, ownership of these machineries was transferred to Orbit Udyog Private Limited (Applicant) at residual value. The Applicant received a letter from NICCO in December 2003, authorizing the delivery of the machineries from the Corporate Debtor. Despite this, the Corporate Debtor did not hand over the machineries. The Applicant sent letters in April 2014 requesting possession. In September 2018, the Corporate Debtor entered Corporate Insolvency Resolution Process (CIRP). The Applicant sent a letter to the Interim Resolution Professional (IRP) in September 2018, requesting delivery, but no action was taken. In October

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## Issues and analysis

### Issue 1: Whether the Resolution Professional of the Corporate Debtor should be directed to deliver the …

**Ratio:** The ratio is based on the interpretation of Section 18(1) of the Insolvency and

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**Reasoning:** The court reasoned that the applicant did not take necessary steps to get possession of

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**Interpretation:** The interpretation involves determining whether the machineries are assets of

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**Application:** The court applied the ratio to the facts by noting that the machineries were

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Orbit Udyog…
- **Respondents:** Fort Gloster…

## Timeline

- **1995-01-01 — Lease Finance…**: Corporate Debtor took machineries on lease…
- **2003-01-01 — Ownership T…**: Ownership of the machineries was…

## 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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