# In the matter of Kiran Global Chem Limited IA(IBC)-146(CHE)-2022 in IBA-45-2020

> NCLT judgment dated 2022-03-16. Citation: TCN-2022-NCLT-03694. The case involves an application (IA(IBC)/146(CHE)/2022) filed under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 16 Mar 2022
- **Citation:** TCN-2022-NCLT-03694
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kiran-global-chem-limited-iaibc-146che-2022-in-iba-45-2020-1316e92f

## Summary

### Background

The case involves an application (IA(IBC)/146(CHE)/2022) filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, by Manmohan Singh Jain and Atul Jain, who are suspended directors/promoters and 92.7% shareholders of the Corporate Debtor, M/s. Kiran Global Chems Limited. The applicants sought to set aside certain communications from the Resolution Professional (RP) and to be included as eligible resolution applicants, claiming the Corporate Debtor is an MSME. The Corporate Insolvency Resolution Process (CIRP) was initiated on 27.04.2021. The applicants are contesting the RP's assessment that the Corporate Debtor does not qualify as an MSME, which affects their eligibility to submit a resolution plan.

## Facts

Manmohan Singh Jain and Atul Jain, suspended directors/promoters and 92.7% shareholders of Kiran Global Chems Limited, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated on 27.04.2021. The applicants sought to set aside communications from the Resolution Professional (RP) and be included as eligible resolution applicants, claiming Kiran Global Chems Limited is an MSME. The RP contested this, stating the applicants fraudulently obtained the MSME certificate after CIRP initiation and suppressed material facts. The RP relied on a Chartered Accountant's certificate deeming the Corporate Debtor ineligible for MSME status due to discrepancies in Income Tax Returns (ITR) and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Kiran Global Chems Limited, qualifies as a Micro, Small, and …

**Ratio:** The classification of an enterprise as MSME is determined by the composite criteria of

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**Reasoning:** The Tribunal relied on the Chartered Accountant's report, which concluded that the

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**Interpretation:** The MSME status is determined based on the composite criteria of investment and

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**Application:** In this case, the Chartered Accountant's report concluded that the Corporate

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Manmohan Singh…
- **Respondents:** M/s. Kiran Global…; Tharuvai Ramachand…
- **Advocates:** P.H. Arvindh…; Raj Jha…; +2 more

## Timeline

- **2020-06-26 — Government Not…**: Government of India issued notification No. S.O. 2119(E) dated 26.06.2020, specifying…
- **2021-04-27 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for Kiran Global Chems Limited…

## 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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