# In the matter of Bombay Rayon Fashions Limited IA-1545,1702 & 1717-2023 in CP (IB) No.1443-MB-IV-2020

> NCLT judgment dated 2023-06-09. Citation: TCN-2023-NCLT-05469. The case involves multiple Interlocutory Applications (IAs) filed in connection with a…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-05469
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/bombay-rayon-fashions-limited-ia-15451702-1717-2023-in-cp-ib-no1443-mb-iv-2020-a5993d8d

## Summary

### Background

The case involves multiple Interlocutory Applications (IAs) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Bombay Rayon Fashions Limited. These IAs pertain to seeking directions for the completion of a sale transaction of the Corporate Debtor's property, amendment of prayers in previous IAs, and related matters.

## Facts

IA-545/2023 was filed by the Resolution Professional seeking direction to Mr. M. Neelakanta Naidu to file an appropriate interlocutory application in original suit no. 295/2020.

IA-1702/2023 was filed by Mr. M. Neelakanta Naidu seeking directions to M/s Bombay Rayon Fashions Limited and JM Financial Assets Reconstruction Company Limited to complete the sale of land admeasuring 20,392 sq. meters.

IA-1717/2023 was filed by the Resolution Professional seeking permission to amend the prayer in para 13(b) of the applicant's Interlocutory application no. 1545 of 2023 to allow sale of property.

In 2011, the Corporate Debtor created a mortgage in favour of Allahabad Bank to obtain credit facilities.

…

## Issues and analysis

### Issue 1: Whether the sale transaction contemplated in the MOU …

**Ratio:** The Resolution Professional, the buyer (Respondent No.1), and the holder of the security

…

**Reasoning:** The bench considered the submissions of all parties and found that all parties were in

…

**Interpretation:** The court interpreted the MOU as a binding agreement between the parties for

…

**Application:** The court applied the principle of enforcing contractual agreements where all

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Satish Kuma…; M. Neelakanta…; +1 more
- **Respondents:** Bombay Rayon…; Neelakanta Naidu…; +1 more
- **Other parties:** Committee of…; JM Financial…
- **Advocates:** Ameya R…; Neha Chau…; +1 more

## Timeline

- **2011 — Mortgage Cr…**: The Corporate Debtor created a…
- **2018-09-27 — Loan Assi…**: Allahabad Bank assigned the loan to JM…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-mumbai/bombay-rayon-fashions-limited-ia-15451702-1717-2023-in-cp-ib-no1443-mb-iv-2020-a5993d8d