# In he matter of Hindustan Magnesium Products Private Limited IA (IBC) 1492-2022 in Company Petition (IB) No. 225-7-HDB-2021

> NCLT judgment dated 2023-02-17. Citation: TCN-2023-NCLT-04551. The case involves an application filed by the Promoter, Director, and Shareholder of Hindustan…

- **Court:** NCLT
- **Order date:** 17 Feb 2023
- **Citation:** TCN-2023-NCLT-04551
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-he-matter-of-hindustan-magnesium-products-private-limited-ia-ibc-1492-2022-in-0590872b

## Summary

### Background

The case involves an application filed by the Promoter, Director, and Shareholder of Hindustan Magnesium Products Private Limited (Corporate Debtor) challenging Clause 6(r) of the Resolution Plan submitted by Respondent No. 2. The applicant contends that Clause 6(r) is illegal because the Corporate Debtor has not developed any technical know-how relating to the manufacturing of Aluminum and Magnesium Alloy, and no intellectual property right was registered or assigned in the name of the Corporate Debtor. The applicant argues that the Information Memorandum did not contain the 'technical know-how and IP' related to manufacturing of Aluminium and Magnesium Alloys and components, which was duly developed by the Applicant and exclusively belongs to the Applicant.

## Facts

Bala Anand Jeldi, the Promoter, Director, and Shareholder of Hindustan Magnesium Products Private Limited (Corporate Debtor), filed an application challenging Clause 6(r) of the Resolution Plan. The Company Petition was admitted under Section 7 of the IBC, and Shri V. Shankar was appointed as the Interim Resolution Professional. The COC approved the resolution plan submitted by Respondent No. 2. The applicant contended that Clause 6(r) is illegal because the Corporate Debtor has not developed any technical know-how relating to the manufacturing of Aluminum and Magnesium Alloy, and no intellectual property right was registered or assigned in the name of the Corporate Debtor. The applicant also argued that the Information Memorandum did not contain the 'technical

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## Issues and analysis

### Issue 1: Whether Clause 6(r) of the Resolution plan can be struck off on the grounds urged in the …

**Ratio:** The ratio is that a clause in the resolution plan pertaining to technology and

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**Reasoning:** The Tribunal reasoned that Clause 6(r) specifically refers to the technical know-how and

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**Interpretation:** The interpretation is that clauses in a resolution plan concerning technology

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**Application:** In this specific case, the Tribunal applied the ratio and reasoning by

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## Parties

- **Judges:** Venkata Ramakrishn…; Shri. Chara…
- **Appellants:** Bala Anand…
- **Respondents:** Hindustan…; V. Sha…
- **Advocates:** Y. Suryana…; M. Vish…; +2 more

## Timeline

- **2022-04-19 — Company Petition…**: The Tribunal admitted the Company Petition filed by Respondent No. 2 under Section 7 of…
- **2022-09-21 — COC Meet…**: The 5th Committee of Creditors (COC) Meeting was held, and the COC approved the…

## 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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