# In the matter of C.P. Ispat Pvt. Ltd. Vs. Maan Steel & Power Ltd. & Ors. Company Appeal(AT)(Insolvency) No. 597 of 2022

> NCLAT judgment dated 2022-09-19. Citation: TCN-2022-NCLAT-00211. This case involves an appeal against an order dated 08.03.2022 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLAT-00211
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/cp-ispat-pvt-ltd-vs-maan-steel-power-ltd-ors-company-appeal-bbdceacf

## Summary

### Background

This case involves an appeal against an order dated 08.03.2022 passed by the National Company Law Tribunal, Kolkata Bench-1, Kolkata, concerning I.A.(IB) No. 207/KB/2019, I.A. (IB) No. 280/KB/2019, and I.A.(IB) No. 1010/KB/2019 in CP(IB) No. 363/KB/2017. The appellant is the Successful Resolution Applicant for the Corporate Debtor, Divya Jyoti Sponge Iron Private Limited. The Resolution Plan, approved by the Committee of Creditors and the Adjudicating Authority on 13.03.2018, was implemented by the Resolution Applicant. However, certain Operational Creditors filed Interlocutory Applications claiming discrepancies in the distribution under the plan.

## Facts

The Corporate Debtor, Divya Jyoti Sponge Iron Private Limited, had its Resolution Plan approved on 13.03.2018. The Appellant, the Successful Resolution Applicant, implemented the plan. Operational Creditors filed Interlocutory Applications claiming that the distribution to them under the plan was not in accordance with the Resolution Plan. The Adjudicating Authority directed the Resolution Applicant to pay 47.49% of the total amount (Rs. 3,15,86,607/-) within 10 days. The Resolution Applicant was relieved from Section 74(3) of the Code. The Resolution Plan contemplated a haircut of 96.83% for Operational Creditors. The total trade payables were Rs. 47.43 Crores, with claims received and admitted by the Resolution Professional amounting to Rs. 3.16 crores. The company

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## Issues and analysis

### Issue 1: Whether the distribution to Operational Creditors under the Resolution Plan was in accordance with …

**Ratio:** The ratio is based on the principle that the Resolution Plan, once approved, is binding

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**Reasoning:** The court reasoned that the Resolution Plan dealt only with claims that were before the

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**Interpretation:** This issue involves the interpretation of the binding nature of a Resolution

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** C.P. Ispat Pvt.…
- **Respondents:** Divya Jyoti…; Maan Steel &…

## Timeline

- **2017-08-23 — Outstandin…**: Company has outstanding dues of Rs. 56.17 Crores as on 23rd August, 2017 payable towards…
- **2018-03-13 — Approval of Resolution…**: Resolution Plan approved by Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 74(3) — Punishment for contravention of moratorium or…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-74)

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