# In the matter of Golden Tobacco Limited IA No. 830-NCLT-AHM-2021 in CP(IB) No. 268-NCLT-07-AHM-2020

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02338. The case involves an application filed by Arrow Engineering Limited, a Financial Creditor,…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02338
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/golden-tobacco-limited-ia-no-830-nclt-ahm-2021-in-cpib-no-268-nclt-07-ahm-2020-d65e40c3

## Summary

### Background

The case involves an application filed by Arrow Engineering Limited, a Financial Creditor, against Golden Tobacco Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The NCLT initially dismissed the application, deeming it not maintainable. This decision was challenged by the Financial Creditor before the NCLAT, which overturned the NCLT's order and directed the Adjudicating Authority to admit the application under Section 7 of the IBC. The Corporate Debtor then appealed to the Supreme Court, which dismissed the appeal, upholding the NCLAT's order.

## Facts

Arrow Engineering Limited, a financial creditor, filed an application (IA No. 830 / NCLT / AHM / 2021 in CP(IB) No. 268 / NCLT / 09/ AHM / 2020) under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Golden Tobacco Limited, the corporate debtor. The NCLT initially dismissed the application on January 25, 2021. Arrow Engineering appealed to the NCLAT, which allowed the appeal on December 2, 2021, setting aside the NCLT's order and directing the NCLT to admit the application. Golden Tobacco Limited then appealed to the Supreme Court, which dismissed the appeal on May 5, 2022. The NCLT then heard the matter on May 13, 2022, and considered arguments from both sides, including an attempt by shareholders

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## Issues and analysis

### Issue 1: Whether the application for CIRP should be admitted given the orders passed by the NCLAT and the …

**Ratio:** The principle of res judicata and the binding nature of appellate court orders. The

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**Reasoning:** The NCLAT had already directed the Adjudicating Authority to admit the application, and

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**Interpretation:** The legal issue revolves around the interpretation of the binding nature of

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**Application:** The ratio and reasoning were applied to the facts of the case by recognizing

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Arrow Engineering…
- **Respondents:** Golden Tobaccco…
- **Advocates:** Robin Jaisi…; Arjun S…; +5 more

## Timeline

- **2021-01-25 — NCLT Ord…**: NCLT dismissed the…
- **2021-12-02 — NCLAT Or…**: NCLAT allowed the appeal and directed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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