# In the matter of Harig Crankshafts Ltd.

> NCLT judgment dated 2024-02-02. Citation: TCN-2024-NCLT-02785. M/s Paras Builders and Promoters filed an application under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLT-02785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harig-crankshafts-ltd-29498ce1

## Summary

### Background

M/s Paras Builders and Promoters filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, against M/s ASREC (India) Ltd, Bank of India, and Mr. Saurabh Chawla, the Resolution Professional (RP) of M/s Harig Crankshaft. The application sought to set aside the admission order dated 31.03.2023, initiating Corporate Insolvency Resolution Process (CIRP) against M/s Harig Crankshaft, and the order dated 11.07.2022, substituting M/s ASREC (India) Ltd as the Financial Creditor. The applicant alleged that the respondents suppressed the fact of an existing interim order dated 20.07.2022 passed by the Commercial Court in a suit filed by the applicant, which restrained the auction of the corporate debtor's

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## Facts

M/s Paras Builders and Promoters (Applicant) filed an application seeking to set aside the CIRP admission order against M/s Harig Crankshafts Ltd (Corporate Debtor). The CIRP was initiated by M/s ASREC (India) Ltd (Respondent No. 1), the assignee of financial debts from Bank of India (Respondent No. 2). The applicant claimed that the respondents suppressed the existence of an interim order dated 20.07.2022 from the Commercial Court, which restrained the auction of the Corporate Debtor's property. This interim order was obtained in a suit filed by the applicant, challenging the termination of an agreement with Bank of India for the purchase of the Corporate Debtor's assets. The applicant argued that the respondents' failure to disclose this order amounted to fraud and

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## Issues and analysis

### Issue 1: Whether the admission order dated 31.03.2023 and the order dated 11.07.2022 needs to be set aside …

**Ratio:** The I&B Code, 2016, aims for the revival of the Corporate Debtor, not just recovery

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**Reasoning:** The NCLT found that the applicant was not a necessary party to the CIRP proceedings and

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**Interpretation:** The I&B Code prioritizes the revival and continuation of the corporate

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**Application:** The NCLT applied these principles to the facts of the case, finding that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/S PARAS…
- **Respondents:** M/S HARIG…; M/s ASREC (India)…

## Timeline

- **2019-03-12 — CP (IB) no.81/2…**: Bank of India initially filed the…
- **2022-03-30 — Assignment Ag…**: Debt assigned to M/s ASREC(India)…

## 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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