# In the matter of Suryajyothi Spinning Mills Ltd.

> NCLT judgment dated 2023-11-23. Citation: TCN-2023-NCLT-00603. The application was filed by Mr. Kare Ramakrishna, Manager, Administration at Suryajyothi…

- **Court:** NCLT
- **Order date:** 23 Nov 2023
- **Citation:** TCN-2023-NCLT-00603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suryajyothi-spinning-mills-ltd-75e82866

## Summary

### Background

The application was filed by Mr. Kare Ramakrishna, Manager, Administration at Suryajyothi Spinning Mills Limited, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions from the NCLT to keep the Corporate Debtor as a going concern and to pay salaries for February, March, April, and May 2023 to employees. The applicant also requested directions to the Liquidator and Stake Holders Consultation Committee to restore power supply to the Corporate Debtor. The Corporate Debtor, established in 1983, was placed under liquidation following the admission of I.A. No. 96 of 2021 on April 18, 2023. The applicant argued that the Burgul plant remained self-sufficient despite financial challenges and that the Liquidator had not taken measures to instill

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## Facts

Mr. Kare Ramakrishna, working as Manager, Administration at Suryajyothi Spinning Mills Limited, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The application sought directions to keep the Corporate Debtor, Suryajyothi Spinning Mills Limited, as a going concern and to pay employee salaries for February, March, April, and May 2023. The Corporate Debtor was admitted into liquidation on April 18, 2023, following the admission of I.A. No. 96 of 2021. The applicant argued that the Burgul plant of the Corporate Debtor remained self-sufficient and that the Liquidator had not taken adequate measures to instill confidence among employees. TSSPDCL disconnected the power supply to the Corporate Debtor, leading the former promoters to expend

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## Issues and analysis

### Issue 1: Whether the Applicant possesses the legal …

**Ratio:** Section 33(7) of the IBC states that a liquidation order operates as a notice of

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**Reasoning:** The NCLT reasoned that the applicant, not being a part of the Stakeholders Consultation

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**Interpretation:** The legal standing to file an application concerning the liquidation process is

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**Application:** In this case, the applicant, being the Manager, Administration of the Corporate

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Kare Ramak…
- **Respondents:** Suryajyothi…; State Bank of…

## Timeline

- **1983-01-01 — Company Estab…**: Suryajyothi Spinning Mills Ltd established…
- **2021-04-18 — Liquidation A…**: I.A. No. 96 of 2021 admitted, placing the…

## 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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