# In the matter of The Jeypore Sugar Company Limited IA(IBC)579-CHE-2022 in CP-1307-IB-2018

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-04692. The application IA(IBC)579/CHE/2022 in CP/1307/IB/2018 was filed under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-04692
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-ii-che/the-jeypore-sugar-company-limited-iaibc579-che-2022-in-cp-1307-ib-2018-ed956eab

## Summary

### Background

The application IA(IBC)579/CHE/2022 in CP/1307/IB/2018 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016, by the Promoters of the Corporate Debtor, M/s. The Jeypore Sugar Company Limited, seeking interim reliefs.

## Facts

The application was filed by the Promoters of the Corporate Debtor.

The application seeks interim reliefs against the Liquidator.

Allegations are made against the Liquidator regarding the sale of assets and handling of litigation.

The 3rd Respondent has submitted a Scheme under Section 230 of Companies Act, 2013.

NCLAT is seized of the matter pertaining to the Scheme proposed under Section 230 of the Companies Act, 2013.

The Tribunal directed the Liquidator to order for fresh valuation of the assets of the Corporate Debtor including the Rayagada Property vide its order dated 17.11.2021 in IA/255(CHE)/2021.

The Hon'ble NCLAT has stayed the order passed by this Tribunal dated 17.11.2021.

## Issues and analysis

### Issue 1: Whether the Liquidator should be restrained from …

**Ratio:** The Tribunal has the power to pass interim orders to protect the assets of the Corporate

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**Reasoning:** Serious allegations have been raised against the Liquidator, and NCLAT is seized of a

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**Interpretation:** The Tribunal interprets its powers under the IBC to include the ability to

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**Application:** The Tribunal applied this interpretation by restraining the Liquidator from

…

## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** R.Pra…; P.R. Ramakr…
- **Respondents:** The Jeypore Sugar…; V. Venkata…
- **Other parties:** Lakshmi Organic…
- **Advocates:** P. Na…; R. Ka…

## Timeline

- **2022-06-03 — Order Pron…**: Order pronounced on 3rd…
- **2021-11-17 — Tribunal…**: Tribunal vide its order dated 17.11.2021 in IA/255(CHE)/2021 has directed the Liquidator…

## 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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