# In the matter of Sintex-BAPL Ltd. IA 374,413 & 474(AHM)2022 in CP(IB) 759 of 2019

> NCLT judgment dated 2022-06-29. Citation: TCN-2022-NCLT-01999. The case involves multiple applications (IA/374(AHM)2022, IA/413(AHM)2022, IA/474(AHM)2022)…

- **Court:** NCLT
- **Order date:** 29 Jun 2022
- **Citation:** TCN-2022-NCLT-01999
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sintex-bapl-ltd-ia-374413-474ahm2022-in-cpib-759-of-2019-af735528

## Summary

### Background

The case involves multiple applications (IA/374(AHM)2022, IA/413(AHM)2022, IA/474(AHM)2022) filed in relation to the Corporate Insolvency Resolution Process (CIRP) of Sintex BAPL Limited. The CIRP was initiated following an application by Zielen Industries Private Limited, an operational creditor. Subsequently, the shareholder of Sintex BAPL, Sintex Plastics Technology Pvt. Ltd., challenged the CIRP admission. During the appeal's pendency, Zielen Industries entered into a settlement with Sintex BAPL. The NCLAT directed both parties to approach the Adjudicating Authority to record the settlement and instructed the IRP not to constitute the Committee of Creditors (CoC) for one week. The shareholder then filed an application to record the settlement and set aside the

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## Facts

The Corporate Debtor, Sintex BAPL Limited, was initially admitted into CIRP based on an application by its Operational Creditor, Zielen Industries Private Limited. The shareholder of Sintex BAPL, Sintex Plastics Technology Pvt. Ltd., challenged this admission. During the pendency of the appeal, Zielen Industries and Sintex BAPL reached a settlement. The NCLAT directed both parties to approach the Adjudicating Authority to record the settlement and instructed the IRP not to constitute the CoC for one week. Subsequently, the shareholder filed an application (IA No. 18(AHM)/2021) to record the settlement and set aside the CIRP, which was opposed by KKR India Financial Services Limited, a Financial Creditor. The Adjudicating Authority initially allowed the settlement and

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## Issues and analysis

### Issue 1: Whether the IRP is obligated to constitute the Committee of Creditors (CoC) despite previous orders …

**Ratio:** The IRP is bound to follow the orders of the Adjudicating Authority and the NCLAT.

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**Reasoning:** The Adjudicating Authority reasoned that the IRP had misread some orders of the NCLAT.

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**Interpretation:** The interpretation revolves around the timeline of the NCLAT orders and their

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**Application:** The Adjudicating Authority applied this reasoning to the facts by noting that

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Zielem Industries…
- **Respondents:** Sintex BAPL…; Sintex-BA…

## Timeline

- **2020-12-18 — Admission in…**: Sintex BAPL Limited was admitted into CIRP at the instance of Zielen Industries Private…
- **2021-01-04 — NCLAT Or…**: Hon'ble NCLAT directed that CoC shall…

## 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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