# In the matter of JNS Infratech Private Limited

> NCLT judgment dated 2023-10-18. Citation: TCN-2023-NCLT-01128. The case involves multiple applications (IA-4994/2022, IA-3926/2022, and CA-453/2020) within…

- **Court:** NCLT
- **Order date:** 18 Oct 2023
- **Citation:** TCN-2023-NCLT-01128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jns-infratech-private-limited-a9743951

## Summary

### Background

The case involves multiple applications (IA-4994/2022, IA-3926/2022, and CA-453/2020) within the Corporate Insolvency Resolution Process (CIRP) of M/s. JNS Infratech Private Limited. IA-4994/2022 was filed by the Resolution Professional (RP) seeking action against the Operational Creditor for allegedly initiating CIRP fraudulently under Section 65 of the Insolvency and Bankruptcy Code (IBC). IA-3926/2022 was filed by the Director of the Ex-management of the Corporate Debtor seeking withdrawal of the CIRP under Section 12A of IBC. CA-453/2020 was filed by the Interim Resolution Professional seeking direction to the promoters of the Corporate Debtor to assist and cooperate with the Interim Resolution Professional. The CIRP was initiated based on an application by an

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## Facts

M/s. JNS Infratech Private Limited is the Corporate Debtor. An Operational Creditor initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. Mr. Naresh Kumar Bhutani was appointed as the Interim Resolution Professional (IRP). The IRP made efforts to contact the Operational Creditor, but the letter was returned with remarks "office locked". The Operational Creditor did not file any claim despite repeated requests. The Resolution Professional (RP) filed IA-4994/2022 seeking action against the Operational Creditor for fraudulent initiation of CIRP under Section 65 of the Insolvency and Bankruptcy Code (IBC). The Director of the Ex-management of the Corporate Debtor filed IA-3926/2022 seeking withdrawal of the CIRP under Section

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## Issues and analysis

### Issue 1: Whether action should be initiated against the Operational Creditor under Section 65 of the IBC for …

**Ratio:** Section 65 of the IBC allows for action against a party initiating the Insolvency

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**Reasoning:** The court noted that the Resolution Professional had filed an application under Section

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**Interpretation:** Section 65 is interpreted to allow for penalties against those who abuse the

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**Application:** The court did not pass any orders under Section 65 because the Operational

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Shree Shyam…
- **Respondents:** JNS Infratech…

## Timeline

- **2018-01-01 — CIRP Init…**: CIRP initiated in C.P.…
- **2019-09-13 — CIRP Ord…**: Adjudicating Authority initiated…

## 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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