# In the matter of Orissa Manganese & Minerals Limited vs. State of Orissa & Ors.

> HC judgment dated 2024-10-01. Citation: TCN-2024-HC-00027. The case involves three writ petitions (W.P.(C) Nos. 1497, 2304, and 2307 of 2024) filed by Orissa…

- **Court:** HC
- **Order date:** 1 Oct 2024
- **Citation:** TCN-2024-HC-00027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/orissa-manganese-minerals-limited-vs-state-of-orissa-ors-bca4e6e6

## Summary

### Background

The case involves three writ petitions (W.P.(C) Nos. 1497, 2304, and 2307 of 2024) filed by Orissa Manganese & Minerals Limited (OMML), challenging demands raised by the State of Odisha related to mining operations. These demands include compensation, stamp duty, registration fees, dead rent, surface rent, and royalty. The core issue revolves around whether these demands, particularly those pertaining to the period prior to the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC), are valid and enforceable. The National Company Law Tribunal (NCLT) approved a resolution plan for OMML, which was later confirmed by the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. The State of Odisha argues that the demands are based on

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## Facts

The State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Orissa Manganese and Minerals Limited (OMML) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The National Company Law Tribunal (NCLT), Kolkata Bench, admitted the application on 03.08.2017, initiating CIRP. Mr. Sumit Binani was appointed as the Interim Resolution Professional (IRP), later becoming the Resolution Professional (RP). The Committee of Creditors (CoC) was formed. Three Resolution Plans were received, including one from Edelweiss Asset Reconstruction Company Limited (EARC) and another from Ghanshyam Mishra and Sons Private Ltd (GMSPL). GMSPL's plan was ultimately approved by the CoC with over 89.23% voting share. EARC filed applications challenging the

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## Issues and analysis

### Issue 1: Whether the demands raised by the State of Odisha, pertaining to the period prior to the approval …

**Ratio:** Section 31(1) of the I&B Code states that once a resolution plan is approved by the

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**Reasoning:** The court reasoned that the legislative intent behind the I&B Code is to revive the

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**Interpretation:** The court interpreted Section 31 of the I&B Code to mean that all claims,

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**Application:** In this case, the State of Odisha's demands pertained to the period prior to

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## Parties

- **Judges:** D. D…; V. Nara…
- **Respondents:** Orissa Manganese…; State of…
- **Other parties:** Kohi…
- **Advocates:** Susanta Kum…; S.P. Sa…; +4 more

## Timeline

- **2017-08-03 — CIRP Init…**: NCLT admits application under Section 7 of IBC, initiating Corporate Insolvency…
- **2018-06-22 — NCLT Approves…**: NCLT approves the Resolution Plan submitted by Ghanshyam Mishra and Sons Private Ltd…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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