# 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-02056. The case involves Jaipur Metals & Electricals Limited (JMEL), a corporate debtor undergoing…

- **Court:** NCLT
- **Order date:** 24 Jun 2022
- **Citation:** TCN-2022-NCLT-02056
- **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-7a35717b

## Summary

### Background

The case involves Jaipur Metals & Electricals Limited (JMEL), a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP). Alchemist Asset Reconstruction Company Limited (AARCL) is the financial creditor. The State of Rajasthan filed applications seeking to impound loan documents, reject claims of AARCL and Asset Reconstruction Company (India) Ltd. (ARCIL) due to insufficient stamp duty, and challenge the actions of the Resolution Professional (RP) in admitting these claims. The State argued that the loan agreements between JMEL and IDBI, assigned to AARCL, were under-stamped. The State also sought reconstitution of the Committee of Creditors (CoC) by rejecting AARCL and ARCIL's claims. The CIRP has a complex history, involving winding-up

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## Facts

Jaipur Metals & Electricals Limited (JMEL) is undergoing CIRP. Alchemist Asset Reconstruction Company Limited (AARCL) is a financial creditor, holding debt assigned from IDBI. The State of Rajasthan, through various applications, challenged the validity of AARCL's claim, alleging insufficient stamp duty on the original loan agreements between JMEL and IDBI. The State also sought to impound the loan documents and reject AARCL's claim. JMEL was declared a sick company under BIFR in 1999. The State of Rajasthan took control of JMEL in 1977. The loans from IDBI and other banks were assigned to AARCL and ARCIL. The State of Rajasthan filed multiple applications (IA Nos. 327/JPR/2019, 34/JPR/2020, 87/JPR/2022) to challenge the claims and actions of the RP. The Hon'ble

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## Issues and analysis

### Issue 1: Whether the actions of the Resolution Professional in admitting the claims of AARCL and ARCIL …

**Ratio:** The RP's role is primarily to collate claims, and the existence of debt can be proven

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**Reasoning:** The Adjudicating Authority reasoned that the RP had duly verified the loan agreement and

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**Interpretation:** The court interpreted the relevant provisions of the IBC and the Rajasthan

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**Application:** The court applied the ratio to the specific facts of the case, finding that the

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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…**: The Corporate Debtor, Jaipur Metals &…
- **1977-01-01 — Government…**: The Government of Rajasthan began…

## 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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