# In the matter of Neeraj Singal & Anr. Vs. Tata Steel Limited & Anr. Company Appeal (AT) (Insolvency) No. 988 of 2021

> NCLAT judgment dated 7 Mar 2022. Citation: TCN-2022-NCLAT-00596. The appeal challenges an order from the Adjudicating Authority (NCLT) that directed the…

- **Court:** NCLAT
- **Order date:** 7 Mar 2022
- **Citation:** TCN-2022-NCLAT-00596
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/neeraj-singal-anr-vs-tata-steel-limited-anr-company-appeal-3f1f2467

## Summary

### Background

The appeal challenges an order from the Adjudicating Authority (NCLT) that directed the appellants, erstwhile promoters, to comply with a resolution plan by selling their shares at INR 2/- per share to the applicant. The appellants contend that the Adjudicating Authority modified the resolution plan and that their shares should not be compulsorily acquired.

## Facts

M/s Bhushan Steel Limited incurred a debt of Rs. 59 thousand crores to its creditors. Consequently, the Corporate Insolvency Resolution Process (CIRP) was initiated in 2017 following an application filed by the State Bank of India. This marked the beginning of the insolvency proceedings for Bhushan Steel Limited, leading to the subsequent events concerning its resolution.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's direction to the appellants to sell their shares at INR 2/-…

**Ratio:** The implementation of the Resolution Plan must be in accordance with the law in force,…

**Reasoning:** The Adjudicating Authority's denial of dispensation from Regulation 31A(7)(b) meant that…

**Interpretation:** The court interpreted Regulation 31A(7)(b) of the SEBI (Listing Obligations and…

**Application:** Since Regulation 31A(7)(b) was in force and dispensation was denied, Tata Steel…

## Parties

- **Judges:** Ashok Bh…; Ashok Kumar…; +1 more
- **Advocates:** For the Appellants…; Niranjan Reddy,…; +8 more

## Timeline

- **2017 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) for M/s Bhushan Steel Limited began on an…
- **May 15, 2018 — Resolution Plan…**: The Resolution Plan submitted by M/s. Tata Steel Limited was approved by the Adjudicating…

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