# In the matter of Laggar Industries Ltd.

> NCLT judgment dated 2024-05-06. Citation: TCN-2024-NCLT-01427. Canara Bank filed an application to rectify the order dated 2024-05-01 regarding the…

- **Court:** NCLT
- **Order date:** 6 May 2024
- **Citation:** TCN-2024-NCLT-01427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/laggar-industries-ltd-728e46bc

## Summary

### Background

Canara Bank filed an application to rectify the order dated 2024-05-01 regarding the appointment of the Interim Resolution Professional (IRP) in the Corporate Insolvency Resolution Process (CIRP) of Laggar Industries Ltd. Initially, Mr. Sanjay Kumar Aggarwal was appointed as IRP. Subsequently, Canara Bank proposed the substitution of IRP because Mr. Aggarwal's Authorization for Assignment (AFA) had expired. The Tribunal considered the application and the submissions made by Mr. Aggarwal, who claimed his AFA was still valid.

## Facts

Canara Bank initiated CIRP against Laggar Industries Ltd. The NCLT initially appointed Mr. Sanjay Kumar Aggarwal as the IRP on 2024-05-01. Canara Bank then filed IA No. 759/2024 seeking to replace Mr. Aggarwal, claiming his AFA had expired. Mr. Aggarwal contested this, stating his AFA was valid until 2024-08-13. The Tribunal found a clerical error in the initial appointment and allowed IA No. 1120/2024, appointing Mr. Rajiv Khurana as the new IRP. Canara Bank was directed to reimburse Mr. Aggarwal's expenses. The order rectifies the initial appointment and ensures the CIRP proceeds with a validly appointed IRP.

## Issues and analysis

### Issue 1: Whether the Tribunal can rectify a clerical error in the appointment of an Interim Resolution …

**Ratio:** Rule 154 of the NCLT Rules, 2016 allows for the rectification of clerical errors. This

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**Reasoning:** The Tribunal determined that the initial appointment of the IRP contained a clerical

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**Interpretation:** Rule 154 provides the NCLT with the authority to correct errors that do not

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**Application:** The Tribunal applied Rule 154 to rectify the error in the IRP appointment,

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## Parties

- **Judges:** SH. L. N.…; Sh. Harnam Singh…
- **Appellants:** Canara…
- **Respondents:** Laggar Industries…

## Timeline

- **2024-05-01 — Initial…**: Order dated 2024-05-01 admitting the corporate debtor under CIRP and appointing Mr.…
- **2024-05-06 — Final Or…**: Order delivered on 2024-05-06 allowing IA No. 1120/2024, rectifying the initial order,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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