# In the matter of Vikas WSP Limited

> NCLT judgment dated 2024-04-04. Citation: TCN-2024-NCLT-01826. The case involves an application filed by the workmen of Vikas WSP Limited under Section 60(5)…

- **Court:** NCLT
- **Order date:** 4 Apr 2024
- **Citation:** TCN-2024-NCLT-01826
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vikas-wsp-limited-6b15babd

## Summary

### Background

The case involves an application filed by the workmen of Vikas WSP Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the acceptance and admission of their claims by the Resolution Professional (RP). The workmen, represented by Shri Ranveer Singh, claim a total amount of Rs. 57,43,51,846, excluding the PF claim. The RP had previously rejected the claims, leading to the filing of I.A. No. 759/2022, which was disposed of on 19.04.2023. The applicants allege that the RP has acted arbitrarily and fraudulently in handling their claims and that the resolution plan is designed to benefit the earlier management of the Corporate Debtor. The Corporate Debtor's assets are valued significantly higher than its liabilities, yet the RP is pursuing a

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## Facts

The applicant, representing 520 workmen of Vikas WSP Limited, filed an application seeking the admission of their claims amounting to Rs. 57,43,51,846, excluding PF. The Corporate Debtor, Vikas WSP Limited, is undergoing Insolvency Resolution Proceedings initiated on 02.02.2022. The Resolution Professional (RP) initially rejected the workmen's claims, leading to the filing of I.A. No. 759/2022, which was disposed of on 19.04.2023. The workmen allege that the RP has acted arbitrarily and fraudulently, favoring the earlier management of the Corporate Debtor. They claim that the Corporate Debtor's assets are significantly higher than its liabilities, making the proposed resolution plan, which undervalues the company, unfair. The RP, however, contends that the claims have

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## Issues and analysis

### Issue 1: Whether the RP has admitted the legal …

**Ratio:** The Resolution Professional is required to act in accordance with the Insolvency and

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**Reasoning:** The NCLT considered the arguments of both the applicant and the RP, and reviewed the

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**Interpretation:** The NCLT interpreted the actions of the RP as being in compliance with the IBC,

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**Application:** The NCLT found that the RP had already admitted the claim of Rs.49,62,76,200/-

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## Parties

- **Judges:** P.S.N. P…; UMESH KUMAR…
- **Appellants:** Workmen of Vikas…
- **Respondents:** Vikas WSP L…

## Timeline

- **2019-01-01 — Negotiations for…**: Mr. Aman Chaudhary, representing the Corporate Debtor's management, began negotiating…
- **2021-01-29 — Suicide In…**: A settlement agreement was negotiated by Mr. Aman Chaudhary with the family of deceased…

## 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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