# In the matter of Aryan Constructions Through Mr. Amit Singh Yadav vs. Punjab National Bank Ltd. Through Its CMD & Ors.

> HC judgment dated 2024-08-05. Citation: TCN-2024-HC-00053. The petitioner, claiming to be an 'Operational Creditor' of the 'Corporate Debtor' (Bhushan Steel &…

- **Court:** HC
- **Order date:** 5 Aug 2024
- **Citation:** TCN-2024-HC-00053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/aryan-constructions-through-mr-amit-singh-yadav-vs-punjab-national-bank-ltd-thro-cc379d5d

## Summary

### Background

The petitioner, claiming to be an 'Operational Creditor' of the 'Corporate Debtor' (Bhushan Steel & Power Ltd.), filed a writ petition under Article 226 of the Constitution of India, seeking directions for respondent banks to protect the interests of bona fide creditors. The Corporate Debtor (CD) was admitted to Corporate Insolvency Resolution Process (CIRP) by an order dated 26.07.2017, initiated by Punjab National Bank (PNB). The Resolution Professional (RP) admitted claims of Rupees Forty Seven Thousand Crores payable to 'Financial Creditors' and Rupees Six Hundred and Twenty Crores to 'Operational Creditors'. The petitioner's grievance stems from alleged arbitrary omissions by the respondents, causing losses to the creditors of the CD. The petitioner also

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## Facts

Aryan Constructions, claiming to be an 'Operational Creditor' of Bhushan Steel & Power Limited ('Corporate Debtor' or 'CD'), filed a writ petition. The CD was admitted into CIRP on 26.07.2017 based on an application by Punjab National Bank (PNB). The Resolution Professional (RP) admitted claims of Rs. 47,000 crores for 'Financial Creditors' and Rs. 620 crores for 'Operational Creditors'. The petitioner alleged that the respondents committed arbitrary omissions, causing losses to the creditors. The petitioner also contended that the 'Resolution Plan' overlooked the fact that the Resolution Applicant (JSW Steel Limited) was a 'related party' of the CD through a joint venture in Rohne Coal Company Private Limited. The Directorate of Enforcement (ED) attached assets of

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) failed to ensure compliance with Section 29A read with …

**Ratio:** The ratio is that the issue of whether the 'Resolution Applicant' was a 'related party'

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**Reasoning:** The court reasoned that the NCLAT had already considered the relationship between the

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**Interpretation:** The interpretation is that once the NCLAT has made a determination on a

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**Application:** The court applied this ratio to the facts by stating that since the NCLAT had

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## Parties

- **Judges:** DHARMESH…
- **Appellants:** ARYAN CONSTRUCTION…
- **Respondents:** Bhushan Steel &…; PUNJAB NATIONAL…

## Timeline

- **2017-07-26 — Admission t…**: Corporate Debtor admitted to Corporate Insolvency Resolution Process (CIRP) by an order…
- **2018-10-16 — Approval of Resolution…**: The 'Resolution Plan' submitted by JSW Steel Limited was approved by the Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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