# 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-01989. 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-01989
- **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-dc83d7cd

## 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. The BIFR later cancelled the scheme in 2008 and reappointed IFCI as the Operating Agency. The Corporate Debtor appealed, but the appeal was dismissed. The Corporate Debtor was admitted into CIRP on May 8, 2018, and subsequently went into liquidation on February 12, 2019, with Shravan Kumar Vishnoi appointed as the liquidator.

## 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. In 2008, BIFR cancelled the scheme and reappointed IFCI as Operating Agency. The Corporate Debtor's appeal against this cancellation was dismissed in 2009. In 2014, a Writ Petition was filed in the Allahabad High Court by a farmer claiming dues. The High Court directed the Cane Commissioner to issue a recovery certificate, which was challenged by the Corporate Debtor but dismissed on October 29, 2014. The Corporate Debtor was admitted into CIRP on May 8, 2018, and

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## Issues and analysis

### Issue 1: Whether Padrauna Sugar Mill belongs to the liquidation estate of the Corporate Debtor (JHV …

**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 and reasoning to the specific facts, noting that

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Cooperative Cane…
- **Respondents:** JHV DISTILLERIES…; Punjab National…
- **Advocates:** Debrup Bhattacharj…; Preety Cho…

## 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 sanctioned scheme and…

## 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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