# In the matter of Jaipur Metals & Electricals Limited IA No. 327-JPR-2019, IA No. 34-JPR-2020,IA No. 87-JPR-2022 in CP No. (IB)- 54(PB)-2018

> NCLT judgment dated 2022-06-24. Citation: TCN-2022-NCLT-02063. The case involves a corporate insolvency resolution process (CIRP) initiated against Jaipur…

- **Court:** NCLT
- **Order date:** 24 Jun 2022
- **Citation:** TCN-2022-NCLT-02063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaipur-metals-electricals-limited-ia-no-327-jpr-2019-ia-no-34-jpr-2020ia-no-87-j-40007f6c

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) initiated against Jaipur Metals & Electricals Limited (JMEL). Alchemist Asset Reconstruction Company Limited (AARCL) filed an application as a financial creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC). The State of Rajasthan filed applications (IA Nos. 327/JPR/2019, 34/JPR/2020, and 87/JPR/2022) seeking to impound loan documents, reject claims of AARCL and Asset Reconstruction Company (India) Ltd. (ARCIL) due to insufficient stamp duty, and stay CIRP proceedings. The State argued that the loan agreements between JMEL, IDBI, and other banks were under-stamped and that the Resolution Professional (RP) should not have admitted the claims of AARCL and ARCIL. The State also alleged

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## Facts

Jaipur Metals & Electricals Limited (JMEL) is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Alchemist Asset Reconstruction Company Limited (AARCL) as a financial creditor. The State of Rajasthan, which has been managing JMEL since 1977, filed multiple applications (IAs) to challenge the CIRP. These applications primarily contest the validity of AARCL's claim due to alleged under-stamping of loan documents dating back to 1996 between JMEL and IDBI. The State also sought to impound these documents and reject AARCL's claim, arguing that the Resolution Professional (RP) should not have admitted it. IDBI assigned its debt to AARCL in 2007. JMEL was declared a sick company under BIFR in 1999. The State of Rajasthan floated an Information

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## Issues and analysis

### Issue 1: Whether the State of Rajasthan's applications to impound loan documents and reject the claims of …

**Ratio:** The existence of debt can be proved by different documents/means irrespective of numerous

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**Reasoning:** The NCLT reasoned that the State of Rajasthan's applications were aimed at delaying and

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**Interpretation:** This legal issue concerns the maintainability of the State's applications in

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**Application:** The ratio and reasoning apply to the specific facts by rejecting the State's

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** State of Ra…
- **Respondents:** Jaipur Metals &…; Arunava S…; +1 more

## Timeline

- **1943-01-01 — Incorporation of…**: Jaipur Metals & Electricals…
- **1977-01-01 — Government…**: The Government of Rajasthan took…

## 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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