# Tata Steel BSL Ltd. Vs. Venus Recruiter Pvt. Ltd. & Ors.

> HC judgment dated 2023-01-13. Citation: TCN-2023-HC-00088. The case involves Letters Patent Appeals (LPA 37/2021 and LPA 43/2021) filed by Tata Steel BSL Ltd.…

- **Court:** HC
- **Order date:** 13 Jan 2023
- **Citation:** TCN-2023-HC-00088
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/tata-steel-bsl-ltd-vs-venus-recruiter-pvt-ltd-ors-b369f81a

## Summary

### Background

The case involves Letters Patent Appeals (LPA 37/2021 and LPA 43/2021) filed by Tata Steel BSL Ltd. and Union of India, respectively, challenging the judgment dated 26.11.2022 in W.P.(C) No. 8705 of 2019. The Single Judge had ruled that an application under Section 43 of the Insolvency and Bankruptcy Code (IBC) for avoidance of preferential transactions cannot continue after the Corporate Insolvency Resolution Process (CIRP) concludes. The appeals seek to overturn this decision.

## Facts

State Bank of India initiated CIRP against Bhushan Steel Limited under Section 7 of IBC due to default in credit facilities. NCLT admitted Bhushan Steel to CIRP on 2017-07-26, appointing Mr. Vijay Kumar Iyer as Interim Resolution Professional. A public announcement was made, inviting claims. The Committee of Creditors (CoC) confirmed Mr. Iyer's appointment on 2017-08-24. Tata Steel Ltd.'s resolution plan was approved by the CoC on 2018-03-20. On 2018-03-28, the RP filed Tata Steel's resolution plan with NCLT. Deloitte, the Forensic Auditor of Bhushan Steel, submitted a report on 2018-04-03, revealing suspect transactions, including potential excess lease payments, preferential credit, excess payments to manpower companies, and uncontracted interest payments. One

…

## Issues and analysis

### Issue 1: Whether an alternate efficacious …

**Ratio:** The IBC is a special statute that seeks to be a single source guide for all issues

…

**Reasoning:** The court referenced Supreme Court judgments emphasizing the importance of adhering to

…

**Interpretation:** The court interpreted Section 60(5)(c) of the IBC to confer broad jurisdiction

…

**Application:** The court found that the Single Judge erred in holding that the writ petition

…

## Parties

- **Judges:** SATISH CHANDRA…; Subramonium…
- **Appellants:** TATA STEEL BSL…
- **Respondents:** Bhushan Steel…; VENUS RECRUITER…
- **Other parties:** 7th Edition…; Avoidance…; +10 more

## Timeline

- **2017-07-26 — CIRP Init…**: NCLT admitted Bhushan…
- **2018-03-20 — CoC Appr…**: CoC approved the resolution plan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

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/high-courts-new-delhi/tata-steel-bsl-ltd-vs-venus-recruiter-pvt-ltd-ors-b369f81a