# In the matter of Yash Smelter Privat Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01057. The case involves applications under Section 54, Section 33(5), 35(1) & 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/yash-smelter-privat-limited-ec3dc047

## Summary

### Background

The case involves applications under Section 54, Section 33(5), 35(1) & 60(5) of the Insolvency and Bankruptcy Code, 2016 read with relevant regulations, concerning the liquidation process of Yash Smelter Private Limited. The liquidator sought dissolution of the Corporate Debtor and directions regarding pending applications against sundry debtors. Several IAs (IBC) were filed, including IA 1473/KB/2023, IA 1012/KB/2021, IA 1020/KB/2021, and IA 1026/KB/2021. The applications primarily concern claims against various parties for amounts due to the Corporate Debtor.

## Facts

Yash Smelter Private Limited is undergoing liquidation. The liquidator, Shashi Agarwal, filed multiple applications (IAs) seeking to recover amounts due from various parties, including Agarwal Alloys, Soil & Enviro Industries Pvt. Ltd., Aashi Infrastructure Pvt. Ltd., and MaaJeen Steel Traders. These parties are considered sundry debtors. The liquidator claimed specific amounts from each debtor, including Rs. 46,60,339/- from MaaJeen Steel Traders and Rs. 39,11,741/- from Soil & Enviro Industries Pvt. Ltd. The debtors contested these claims, alleging that the materials supplied by Yash Smelter were of inferior quality and were either returned or adjusted against dues. MaaJeen Steel Traders claimed to have informed Yash Smelter about the inferior quality of

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## Issues and analysis

### Issue 1: Whether the claims of the liquidator against the sundry debtors should be admitted and orders …

**Ratio:** The adjudication of disputes requires supporting documents. In the absence of such

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**Reasoning:** The court found that there was a lack of supporting documents to substantiate the

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**Interpretation:** The principle of natural justice requires that claims be supported by evidence

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**Application:** In the case of IA 1012/KB/2021, the court found that there were no supporting

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** Shashi Ag…
- **Respondents:** Yash Smelter…; Gaurav B…

## Timeline

- **2018-05-21 — Invoices…**: Corporate Debtor issued invoices to MaaJeen…
- **2018-06-05 — Letter from MaaJeen…**: MaaJeen Steel Traders informed the Corporate Debtor that the materials supplied were of…

## 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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