# In the matter of Jhabua Power Limited IA(I.B.C) 1379-KB-2020 in C.P. (IB) 634-KB-2017

> NCLT judgment dated 2022-07-06. Citation: TCN-2022-NCLT-01856. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Jul 2022
- **Citation:** TCN-2022-NCLT-01856
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jhabua-power-limited-iaibc-1379-kb-2020-in-cp-ib-634-kb-2017-966831f6

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016. The applicant, Rajesh Gupta, an operational creditor, seeks a direction from the court to the Resolution Professional to accept the remaining claim of Rs. 67,79,661 along with interest as per Section 16 of the MSME Act, 2006, until actual realization. The applicant contends that the Corporate Debtor, M/s Jhabua Power Limited, issued purchase orders for items/services amounting to Rs. 47,16,354 and Rs. 95,11,857, which were supplied in August 2015. The applicant claims a loss of interest of Rs. 43,15,000 due to inordinate delay from August 1, 2015, to March 1, 2019, and also claims Rs. 18 Lakhs as time value of money and profit.

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## Facts

Rajesh Gupta, an operational creditor, filed a claim against M/s Jhabua Power Limited, the corporate debtor, for unpaid dues related to items/services supplied. The original purchase orders amounted to Rs. 47,16,354 and Rs. 95,11,857, with the supplies made in August 2015. Gupta also claimed an additional Rs. 43,15,000 as loss of interest due to delayed payments from August 1, 2015, to March 1, 2019, and Rs. 18 Lakhs as time value of money and profit. The Resolution Professional (RP) admitted a portion of the claim (Rs. 59,47,339) but rejected the remaining Rs. 64,01,661, citing a lack of substantiation for the claimed interest, profit, legal fees, and other expenses. The RP also noted that Gupta did not initially disclose being an MSME and that the Facilitation

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## Issues and analysis

### Issue 1: Whether the Resolution Professional should be directed to accept the remaining claim of Rs. …

**Ratio:** The Resolution Professional is not obligated to accept unsubstantiated claims. Claims for

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**Reasoning:** The court found that the applicant's claim for the balance amount was not adequately

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**Interpretation:** Section 16 of the MSME Act, 2006, provides for interest on delayed payments to

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**Application:** In this case, the applicant failed to provide sufficient documentation to

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Rajesh…
- **Respondents:** M/s Jhabua Power…; Abilash…
- **Advocates:** Ratnanko B…; Mamta B…; +8 more

## Timeline

- **2015-08-01 — Supply of Items…**: The applicant supplied items/services to…
- **2019-05-27 — Claim Filed by…**: The applicant filed a claim in Form-B…

## 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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