# In the matter of J H V Distilliers & Sugars Mills Private Limited IA (IB) No. 249-KB-2020
and IA (IB) No. 1049-KB-2021 in CP (IB) No.221-KB-2018

> NCLT judgment dated 2022-06-29. Citation: TCN-2022-NCLT-01982. The case involves a dispute over the ownership of Padrauna Sugar Mill, a property of the sick…

- **Court:** NCLT
- **Order date:** 29 Jun 2022
- **Citation:** TCN-2022-NCLT-01982
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/j-h-v-distilliers-sugars-mills-private-limited-ia-ib-no-249-kb-2020-and-ia-ib-no-33c63d62

## Summary

### Background

The case involves a dispute over the ownership of Padrauna Sugar Mill, a property of the sick company Cawnpore Sugar Works Limited. JHV Distilleries and Sugar Mills Limited (Corporate Debtor) was appointed as the promoter of Cawnpore Sugar Works under a scheme sanctioned by the BIFR in 2003. The Corporate Debtor was to pay dues to farmers who supplied cane to Padrauna Sugar Mill. However, the Corporate Debtor failed to comply with the scheme, leading to its cancellation by the BIFR in 2008. The liquidator of the Corporate Debtor sought to include Padrauna Sugar Mill in the liquidation estate, which was contested by Cooperative Cane Development Society Limited and Punjab National Bank.

## Facts

In 2003, JHV Distillery and Sugar Mill Limited (Corporate Debtor) was appointed promoter of the sick company Cawnpore Sugar Works Limited under a BIFR-sanctioned scheme. The scheme involved the Corporate Debtor paying dues to farmers who supplied cane to Padrauna Sugar Mill, a unit of Cawnpore Sugar Works. The Corporate Debtor failed to comply with the scheme, leading to its cancellation by BIFR on July 10, 2008. The Corporate Debtor's appeal against this cancellation was dismissed on June 29, 2009. In 2014, a Writ Petition was filed in the Allahabad High Court regarding dues for cane supply. The Adjudicating Authority admitted the Corporate Debtor into CIRP on May 8, 2018, and liquidation commenced on February 12, 2019, with Shravan Kumar Vishnoi appointed as

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## Issues and analysis

### Issue 1: Whether Padrauna Sugar Mill belongs to the Corporate Debtor or Cawnpore Sugar Works Limited and …

**Ratio:** Section 36 of the Insolvency and Bankruptcy Code (IBC) states that the liquidation estate

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**Reasoning:** The court reasoned that the BIFR scheme, which initially included Padrauna Sugar Mill as

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**Interpretation:** The court interpreted Section 36 of the IBC to mean that assets not owned by

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**Application:** The court applied the ratio to the facts by determining that since Padrauna

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Cooperative Cane…
- **Respondents:** JHV DISTILLERIES…; Shravan Kumar…
- **Advocates:** Debrup Bhattacharj…

## Timeline

- **2003-06-18 — Appointment as…**: JHV Distillery and Sugar Mill Limited appointed as promoter of Cawnpore Sugar Works…
- **2008-07-10 — Cancellation o…**: BIFR cancelled the…

## 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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