# In the matter of Hindustan Paper Corporation Limited IA No. 1164-2021 in Company Petition (IB) No. 418-ND-2018

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02511. M/s VM Engineers, an operational creditor, filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLT-02511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindustan-paper-corporation-limited-ia-no-1164-2021-in-company-petition-ib-no-41-0e72a715

## Summary

### Background

M/s VM Engineers, an operational creditor, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking direction from the NCLT to direct the Liquidator of Hindustan Paper Corporation Limited to admit their claim of Rs. 1,04,34,836, which was partially rejected. The Corporate Insolvency Resolution Process (CIRP) was initiated against Hindustan Paper Corporation Limited, and Mr. Kuldeep Verma was appointed as the Interim Resolution Professional (IRP) and later as the Liquidator. The applicant had supplied, erected, and commissioned a 15MT capacity EOT Crane for the corporate debtor.

## Facts

M/s VM Engineers (Applicant) supplied, erected, and commissioned a 15MT capacity EOT Crane for Hindustan Paper Corporation Limited (Corporate Debtor). The Corporate Debtor issued a purchase order on 11.08.2016 for Rs. 78,22,650 and a work order on 16.02.2017 for Rs. 60,000. The applicant performed its part of the agreement and delivered the crane on 10.01.2017, which was commissioned on 19.04.2017. The applicant raised several invoices and debit notes. The Corporate Debtor admitted its liability towards the applicant but cited financial difficulties. The applicant filed an RTI to inquire about financial assistance received by the Corporate Debtor. A demand notice was issued under Section 8 of the IBC. The CIRP was initiated on 13.06.2018. The applicant filed a claim in

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## Issues and analysis

### Issue 1: Whether the application filed under Section 60(5) of the IBC, 2016 is maintainable against the …

**Ratio:** Section 42 of the IBC provides a specific remedy for appealing against the decision of

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**Reasoning:** The NCLT reasoned that since Section 42 provides a specific remedy for challenging the

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**Interpretation:** The court interpreted that when a specific provision exists for a particular

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**Application:** The applicant failed to file an appeal under Section 42 within 14 days of

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** M/s VM Eng…
- **Respondents:** M/s Hindustan…; Kuldeep…

## Timeline

- **2016-08-11 — Purchase…**: Corporate Debtor issued a Purchase Order to the Applicant for supply, erection and…
- **2017-02-16 — Work Ord…**: Corporate Debtor issued a Work Order to the Applicant for the replacement of Base &…

## 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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