# In the matter of Liberty House Group Pte. Ltd. Vs. State Bank of India & Ors. CA(AT)(Ins) No.724-725,870 of 2019

> NCLAT judgment dated 2020-03-03. Citation: TCN-2020-NCLAT-00351. The case involves three company appeals (724, 725, and 870 of 2019) before the NCLAT…

- **Court:** NCLAT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLAT-00351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/liberty-house-group-pte-ltd-vs-state-bank-of-india-ors-ca-66641aae

## Summary

### Background

The case involves three company appeals (724, 725, and 870 of 2019) before the NCLAT concerning the corporate insolvency resolution processes of Adhunik Metaliks Limited and Zion Steel Limited. State Bank of India initiated insolvency proceedings against both companies under Section 7 of the Insolvency and Bankruptcy Code (IBC). Liberty House Group Pte. Ltd. submitted resolution plans for both companies, which were approved by the Adjudicating Authority (NCLT), Kolkata. However, Liberty House failed to implement the plans, leading to the Adjudicating Authority ordering liquidation of both companies. These appeals challenge the liquidation order.

## Facts

State Bank of India initiated corporate insolvency resolution processes (CIRP) against Adhunik Metaliks Limited and Zion Steel Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Liberty House Group Pte. Ltd. submitted resolution plans for both companies and was declared the successful resolution applicant. The resolution plans were approved by the Adjudicating Authority (NCLT), Kolkata on July 17, 2018, for Adhunik Metaliks and July 10, 2018, for Zion Steel. The Committee of Creditors approved the resolution plans with 99.94% and 100% voting shares, respectively. MSTC Limited's claim was rejected and challenged unsuccessfully up to the Supreme Court. Liberty House failed to implement the resolution plans, citing grievances regarding non-compliance by

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## Issues and analysis

### Issue 1: Whether the liquidation orders passed by the Adjudicating Authority against Adhunik Metaliks …

**Ratio:** The NCLAT has the power to interfere with the orders of the Adjudicating Authority under

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**Reasoning:** The NCLAT considered the fact that Liberty House Group Pte. Ltd. had now committed to

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**Interpretation:** The NCLAT interpreted Rule 11 of the NCLAT Rules, 2016, to allow it to exercise

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**Application:** The NCLAT applied this ratio to the specific facts of the case, where Liberty

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Liberty House…
- **Respondents:** Adhunik Metaliks…; State Bank of…
- **Advocates:** Virender…; Arvind Kuma…; +10 more

## Timeline

- **2018-07-17 — Approval of Resolution…**: The Adjudicating Authority (NCLT), Kolkata, approved the resolution plan submitted by…
- **2018-07-10 — Approval of Resolution…**: The Adjudicating Authority (NCLT), Kolkata, approved the resolution plan submitted by…

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