# In the matter of Mithilanchal Industries Private Limited

> NCLT judgment dated 2023-09-15. Citation: TCN-2023-NCLT-01606. The case involves Mithilanchal Industries Private Limited, which was admitted into the…

- **Court:** NCLT
- **Order date:** 15 Sept 2023
- **Citation:** TCN-2023-NCLT-01606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mithilanchal-industries-private-limited-94667d38

## Summary

### Background

The case involves Mithilanchal Industries Private Limited, which was admitted into the Corporate Insolvency Resolution Process (CIRP) on April 15, 2021, and April 20, 2021. Jigar Bhatt was appointed as the Interim Resolution Professional (IRP). After the admission order, Form-A was issued and published. The Committee of Creditors (CoC) was formed, and in its first meeting, the IRP was appointed as the Resolution Professional (RP). The RP filed an application seeking directions on the Suspended Management to extend cooperation. Form-G was published, setting a deadline for resolution plan submissions. The RP apprised the CoC of non-cooperation from the Suspended Management, who had not handed over the custody of assets or details relating to the Corporate Debtor. The RP

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## Facts

Mithilanchal Industries Private Limited was admitted into CIRP on April 15, 2021, and April 20, 2021. Jigar Bhatt was appointed as the IRP and later as RP. The Suspended Management allegedly did not cooperate with the RP by failing to hand over assets and documents. Form-G was published twice, but no resolution plan was received. The CoC voted with 100% majority to liquidate the Corporate Debtor. The Suspended Management filed an application seeking to set aside the CIRP, alleging fraudulent proceedings by the Financial Creditor. They claimed the account was wrongly declared NPA, and the OTS failed due to the Financial Creditor's actions. They also alleged the RP failed to perform duties under Section 25 of the IBC. The RP denied the allegations and stated the progress

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) of Mithilanchal Industries Private …

**Ratio:** The principle of finality in judicial decisions and the limited scope of intervention in

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**Reasoning:** The Tribunal noted that the order admitting the Corporate Debtor to insolvency was

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**Interpretation:** The legal issue concerns the validity of the CIRP given allegations of

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**Application:** The ratio and reasoning are applied to the specific facts by dismissing the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Jigar B…
- **Respondents:** Mithilanchal…; Vivekanand…

## Timeline

- **2021-04-15 — Admission in…**: Mithilanchal Industries Private Limited was admitted into the Corporate Insolvency…
- **2021-04-20 — Admission in…**: Mithilanchal Industries Private Limited was admitted into the Corporate Insolvency…

## 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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