# In the matter of Jenson & Nicholson (India) Limited

> NCLT judgment dated 2023-05-16. Citation: TCN-2023-NCLT-03337. This case involves an application by Vivid Colors Private Limited against Vinay Talwar, the…

- **Court:** NCLT
- **Order date:** 16 May 2023
- **Citation:** TCN-2023-NCLT-03337
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jenson-nicholson-india-limited-51f8ecf2

## Summary

### Background

This case involves an application by Vivid Colors Private Limited against Vinay Talwar, the Liquidator of Jenson & Nicholson (India) Limited, seeking refunds of CIRP costs and related expenses. The Corporate Debtor, Jenson & Nicholson (India) Limited, was admitted into CIRP on August 7, 2017. The applicant, being the sole member of the Committee of Creditors (CoC), claims that the liquidator has improperly sought reimbursement for CIRP costs, including advertisement expenses, despite the Corporate Debtor having sufficient internal resources to cover these costs. The applicant contends that the liquidator's actions violate IBBI circulars and relevant regulations.

## Facts

Jenson & Nicholson (India) Limited was admitted into CIRP on August 7, 2017. Vivid Colors Private Limited was the sole member of the Committee of Creditors (CoC). Vinay Talwar served as the Interim Resolution Professional (IRP) and later as the Liquidator. The CoC approved Rs.21,335/- incurred by the IRP, a remuneration of Rs. 2 lakhs a month for the IP, and a lumpsum remuneration of Rs. 10 lakhs plus expenses for the Resolution Professional. The Corporate Debtor was ordered to be liquidated on February 12, 2018. Vivid Colors, a secured creditor, intended to realize its security interest in land and building at Sikandrabad, U.P. The liquidator invited Expressions of Interest (EOI) but failed to receive any response. The liquidator claimed Rs. 44,13,560/- as total

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## Issues and analysis

### Issue 1: Whether the liquidator was justified in claiming CIRP costs from the applicant, a secured creditor, …

**Ratio:** The principle is that CIRP costs should first be met from the internal sources of the

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**Reasoning:** The court reasoned that the IBBI circular clearly states that CIRP costs should be paid

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**Interpretation:** The interpretation of the IBBI circular is that it mandates the utilization of

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**Application:** In this case, the court found that the Corporate Debtor had sufficient internal

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## Parties

- **Judges:** ShriBidisha…; Balraj…
- **Appellants:** Vivid Colors…
- **Respondents:** Jenson & Nicholson…; Vinay Talwar,…

## Timeline

- **2017-08-07 — CIRP Init…**: Jenson & Nicholson (India) Limited admitted into Corporate Insolvency Resolution Process…
- **2017-09-06 — First CoC M…**: First meeting of the Committee of Creditors (CoC) held; Respondent appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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