# In the matter of Worldwide Machinery Solutions Private Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00016. The case involves an application (IA No. 527/JPR/2023) filed by Worldwide Machinery Solutions…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/worldwide-machinery-solutions-private-limited-af72b29f

## Summary

### Background

The case involves an application (IA No. 527/JPR/2023) filed by Worldwide Machinery Solutions Pvt. Ltd. (Corporate Debtor) seeking the dismissal of a Company Petition (CP No. (IB)-18/7/JPR/2023) filed by SREI Equipment Finance Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Financial Creditor had initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. An earlier application under Section 227 read with Section 239(2)(zk) of the Code read with Rules 5 & 6 of the Insolvency & Bankruptcy Rules, 2019 was filed before the NCLT, Kolkata Bench by Reserve Bank of India ('RBI') against the Financial Creditor, which was admitted on 08.10.2021, initiating CIRP against the Financial Creditor.

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## Facts

SREI Equipment Finance Limited (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against Worldwide Machinery Solutions Pvt. Ltd. (Corporate Debtor) by filing CP No. (IB)-18/7/JPR/2023 under Section 7 of the IBC. Prior to this, the Reserve Bank of India (RBI) initiated CIRP against SREI Equipment Finance Limited itself, which was admitted by the NCLT Kolkata Bench on 08.10.2021. During the CIRP of SREI, the Administrator appointed by NCLT Kolkata Bench continued the Section 7 application against Worldwide Machinery Solutions. Subsequently, the Resolution Plan for SREI was approved on 11.08.2023, and NARCL took over the management. Worldwide Machinery Solutions then filed IA No. 527/JPR/2023 seeking dismissal of the CP filed by SREI, arguing

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## Issues and analysis

### Issue 1: Whether the Administrator of the Financial Creditor, SREI Equipment Finance Limited, has the locus …

**Ratio:** The new management of the Financial Creditor, NARCL, has ratified the appointment of Mr.

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**Reasoning:** The court reasoned that the Corporate Debtor's argument that the Administrator lacks

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**Interpretation:** The court interpreted that the change in management of the Financial Creditor

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**Application:** The court applied the ratio to the facts by stating that the Corporate Debtor

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Respondents:** Worldwide…; SREI Equipment…

## Timeline

- **2021-10-08 — CIRP Initiation against…**: NCLT Kolkata Bench admitted the application filed by Reserve Bank of India (RBI) against…
- **2023-08-11 — Resolution Plan…**: The Resolution Plan submitted by National Asset Reconstruction Company Limited ('NARCL')…

## 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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