# In the matter of Rai Bahadur Shreeram & Company Pvt. Ltd. Vs. Ferro Alloys Corporation Ltd. & Anr. CA(AT)(Ins)No.1397 of 2019

> NCLAT judgment dated 2019-12-03. Citation: TCN-2019-NCLAT-00062. The case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 3 Dec 2019
- **Citation:** TCN-2019-NCLAT-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rai-bahadur-shreeram-company-pvt-ltd-vs-ferro-alloys-corporation-ltd-anr-ca-4d2331cf

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal) Cuttack Bench, which was considering a 'Corporate Insolvency Resolution Process' for 'Ferro Alloys Corporation Ltd.' The appellant, the promoter, raised objections regarding the inclusion of a subsidiary company of the 'Corporate Debtor' and the request for a 'Resolution Plan', including experience to run the subsidiary company. The Adjudicating Authority made observations regarding the application while the approval of the plan was pending.

## Facts

The 'Corporate Insolvency Resolution Process' of 'Ferro Alloys Corporation Ltd.' is pending before the Adjudicating Authority (National Company Law Tribunal) Cuttack Bench. The promoter (appellant) objected to the inclusion of a subsidiary company of the 'Corporate Debtor' and the request for a 'Resolution Plan', including experience to run the subsidiary company. The Adjudicating Authority made observations in an impugned order dated 18th October, 2019, while the matter relating to the approval of the plan was still pending. The Adjudicating Authority did not want to comment on the RFRP at that stage, stating that the decision of the COC in respect of the Resolution Plan is purely commercial in nature. The appellant was allowed to raise objections by filing a specific

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in its observations regarding the Resolution Plan while …

**Ratio:** The decision of the COC in respect of the

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**Reasoning:** The Adjudicating Authority's role is limited in matters of commercial decisions made by

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**Interpretation:** The court interpreted that the Adjudicating Authority should not interfere with

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**Application:** The court applied the ratio by allowing the Adjudicating Authority to consider

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Rai Bahadur…
- **Respondents:** Ferro Alloys…; Ferro Alloys…
- **Advocates:** Rajiv R…; Sumesh D…; +4 more

## Timeline

- **2019-10-18 — Impugned…**: The Adjudicating Authority issued an impugned order making observations while the matter…
- **2019-12-03 — Plan Pending…**: The 'Plan' is pending for approval, and the Appellant raised objections about the…

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