# In the matter of Orissa Manganese & Minerals Limited

> NCLT judgment dated 2023-09-05. Citation: TCN-2023-NCLT-01767. The case involves an application filed by N.K Minerals Private Limited, an operational…

- **Court:** NCLT
- **Order date:** 5 Sept 2023
- **Citation:** TCN-2023-NCLT-01767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orissa-manganese-minerals-limited-a03fdc04

## Summary

### Background

The case involves an application filed by N.K Minerals Private Limited, an operational creditor, seeking to forward an order passed in CP No. 167/CTB/2019 to the IBBI for initiating criminal action against Orissa Manganese and Minerals Limited, the corporate debtor, for contravention of a resolution plan. The corporate debtor was previously subject to a Corporate Insolvency Resolution Process (CIRP) initiated by State Bank of India, and a resolution plan submitted by Ghanashyam Misra & Sons Private Limited was approved. As per the approved resolution plan, N.K Minerals Private Limited was entitled to receive a sum of Rs.85,65,163.00. When the successful resolution applicant failed to pay the said amount, the applicant filed an application CP No. 167/CTB/2019 under

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## Facts

N.K Minerals Private Limited, an operational creditor, filed an application against Orissa Manganese and Minerals Limited, the corporate debtor, seeking to forward an order to the IBBI for initiating criminal action for contravention of a resolution plan. Orissa Manganese and Minerals Limited was previously under CIRP initiated by State Bank of India. A resolution plan submitted by Ghanashyam Misra & Sons Private Limited was approved, entitling N.K Minerals Private Limited to receive Rs.85,65,163.00. When the successful resolution applicant failed to pay, N.K Minerals Private Limited filed CP No. 167/CTB/2019 under Section 9 of IBC. During the proceedings, Orissa Manganese and Minerals Limited tendered a demand draft for Rs.85,65,163.00, but N.K Minerals Private

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## Issues and analysis

### Issue 1: Whether the mere contravention of a resolution plan attracts Section 74(3) of the IBC, requiring a …

**Ratio:** Section 74(3) of the IBC requires that the contravention of a resolution plan must be

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**Reasoning:** The court reasoned that the respondent had come forward to pay the amount due via demand

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**Interpretation:** Section 74(3) is interpreted to mean that there must be evidence of deliberate

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**Application:** In this case, the respondent's attempt to pay the amount due via demand draft,

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** N.K MINERLS…
- **Respondents:** Orissa Manganese…
- **Advocates:** Chittaranja…; Anuj S…; +1 more

## Timeline

- **2017-08-03 — Order by NCLT, Kolkata…**: NCLT, Kolkata Bench ordered Corporate Insolvency Resolution Process against Orissa…
- **2018-06-22 — Approval of Resolution…**: NCLT, Kolkata Bench approved a resolution plan submitted by Ghanashyam Misra & Sons…

## 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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