# In the matter of Kerala Chamber of Commerce and Industries

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00005. The application arises from CP(IB)/33/KOB/2021, which was admitted on 21.02.2022, initiating…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kerala-chamber-of-commerce-and-industries-10949de8

## Summary

### Background

The application arises from CP(IB)/33/KOB/2021, which was admitted on 21.02.2022, initiating CIRP against Kerala Chamber of Commerce and Industries (KCCI). The applicant, representing home buyers, filed the application under Section 60(5) of the IBC, 2016, read with Rules 11 and 32 of NCLT Rules, 2016, seeking to set aside the claim verified in favor of Respondent No. 2 (Phoenix ARC), reconstitute the Committee of Creditors without Respondent No. 2, and restrain Respondent No. 2 from exercising voting rights and attending CoC meetings. The applicant contends that the assignment agreement between South Indian Bank and Phoenix ARC is void due to insufficient stamping and non-registration.

## Facts

The Kerala Chamber of Commerce and Industries (KCCI) faced corporate insolvency resolution process (CIRP) initiated via CP(IB)/33/KOB/2021, admitted on 2022-02-21. Phoenix Arc Private Limited, an Asset Reconstruction Company (ARC), initiated the CIRP based on an assignment agreement dated 2017-03-17 with South Indian Bank. The applicant, representing home buyers, filed an application (IA(IBC)/254/KOB/2023) challenging the validity of Phoenix ARC's claim, arguing that the assignment agreement was insufficiently stamped and unregistered, making it void. The applicant also sought to reconstitute the Committee of Creditors (CoC) without Phoenix ARC and restrain them from exercising voting rights or attending CoC meetings. The Resolution Professional (RP) had admitted

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## Issues and analysis

### Issue 1: Whether the assignment agreement between South Indian Bank and Phoenix ARC is void and …

**Ratio:** Agreements which are not stamped or are inadequately stamped are inadmissible in evidence

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**Reasoning:** The NCLT relied on the Supreme Court's decision in M/S. N.N. Global Mercantile Private

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**Interpretation:** The Supreme Court's interpretation of the Stamp Act clarifies that the lack of

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**Application:** The NCLT applied this principle to the assignment agreement, concluding that

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** Kerala Trade…
- **Respondents:** Kerala Chamber of…; Jossy Stephen…

## Timeline

- **2021-01-01 — CP(IB)/33/KOB/2…**: Corporate Insolvency Resolution Process (CIRP) application filed against Kerala Chamber…
- **2017-03-17 — Assignment Ag…**: Assignment Agreement executed between…

## 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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