# In the matter of H. L. Tech Fabrics Limited I.A. NO. 537-ND-2021 in Company Petition No. (IB)-1617(ND)-2019

> NCLT judgment dated 2023-06-05. Citation: TCN-2023-NCLT-03086. The case pertains to IA No. 537/ND/2021 filed in Company Petition No. (IB)-1617(ND)/2019 by the…

- **Court:** NCLT
- **Order date:** 5 Jun 2023
- **Citation:** TCN-2023-NCLT-03086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/h-l-tech-fabrics-limited-ia-no-537-nd-2021-in-company-petition-no-ib-1617nd-2019-a9f92bc5

## Summary

### Background

The case pertains to IA No. 537/ND/2021 filed in Company Petition No. (IB)-1617(ND)/2019 by the Resolution Professional (RP) of H.L. Tech Fabrics Limited, seeking approval of a resolution plan submitted by Shree Varun Infratech. The original petition was filed by Sunlarge Industries Private Limited against H.L. Tech Fabrics Limited under Section 9 of the IBC, 2016, and CIRP was initiated on 10.02.2020. The resolution plan was approved by the Committee of Creditors (CoC), consisting of Canara Bank, with 100% voting share. Objections were raised by Sunlarge Industries Private Limited, the operational creditor, regarding the eligibility of the resolution applicant, Mr. Jitendra Kumar Nagwani, due to disqualification under Section 29A of the IBC, 2016, as he was a director

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## Facts

1. Sunlarge Industries Private Limited initiated CIRP against H.L. Tech Fabrics Limited under Section 9 of IBC, admitted on 10.02.2020.
2. Pawan Kumar Singal was appointed as the Resolution Professional (RP).
3. Shree Varun Infratech, represented by Proprietor Jitendra Kumar Nagwani, submitted a resolution plan.
4. The CoC, consisting solely of Canara Bank, approved the resolution plan with 100% voting share on 15.12.2020, with voting concluding on 13.01.2021.
5. Sunlarge Industries Private Limited objected to the resolution plan, arguing that Jitendra Kumar Nagwani was disqualified under Section 29A of IBC.
6. Jitendra Kumar Nagwani was a director in Shivam Tanks & Vessels Private Limited, which was struck off from the register of companies.
7. The ROC Gwalior reported

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## Issues and analysis

### Issue 1: Whether the Resolution Applicant, Mr. Jitendra Kumar Nagwani, was disqualified under Section 29A of …

**Ratio:** Section 29A(e) of the IBC, 2016, disqualifies a person from being a resolution applicant

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**Reasoning:** The Adjudicating Authority relied on the reports from the ROC Gwalior and RD Ahmedabad,

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**Interpretation:** Section 29A(e) is interpreted strictly to ensure that only eligible individuals

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**Application:** In this case, Mr. Jitendra Kumar Nagwani was disqualified as a director under

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Sunlarge Industrie…
- **Respondents:** H.L. Tech Fabrics…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2020-02-10 — CIRP Init…**: CIRP initiated against…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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