# In the matter of Rajat Metaal Polychem Pvt. Ltd. vs. Neeraj Bhatia & Ors.

> NCLAT judgment dated 2024-09-04. Citation: TCN-2024-NCLAT-00221. The appeal was filed by an Operational Creditor challenging the order dated 21.04.2022 passed…

- **Court:** NCLAT
- **Order date:** 4 Sept 2024
- **Citation:** TCN-2024-NCLAT-00221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajat-metaal-polychem-pvt-ltd-vs-neeraj-bhatia-ors-676536e6

## Summary

### Background

The appeal was filed by an Operational Creditor challenging the order dated 21.04.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court – V), which allowed the Application I.A. 2946/2021 filed by the Resolution Professional for approval of the Resolution Plan. The Corporate Debtor, Vinayak Rathi Steels Rolling Private Limited, was put into Corporate Insolvency Resolution Process (CIRP) initiated by order dated 16.06.2020, on an application filed by Jammu and Kashmir Bank, the Financial Creditor. The appellant filed its claim as Operational Creditor on 01.08.2020 for an amount of ₹1,54,64,626/-, out of which RP admitted ₹93,00,564/-. The appellant's application against rejection of the claim was dismissed on 23.09.2021. The

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## Facts

Vinayak Rathi Steels Rolling Private Limited (Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 16.06.2020 by Jammu and Kashmir Bank (Financial Creditor). Rajat Metaal Polychem Pvt. Ltd. (Appellant) filed a claim as Operational Creditor on 01.08.2020 for ₹1,54,64,626, of which ₹93,00,564 was admitted by the Resolution Professional (RP). The Appellant's application against rejection of the claim was dismissed on 23.09.2021. The admitted claim of the Financial Creditor was ₹6013.50 Lakhs. The Resolution Applicant proposed ₹2312.50 Lakhs to the Financial Creditor and ₹30,50,206 for CIRP costs. No amount was proposed for the Operational Creditor. The Committee of Creditors (CoC), consisting solely of the Financial Creditor, approved

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in approving the Resolution Plan that did not …

**Ratio:** The Adjudicating Authority's jurisdiction is circumscribed by Section 30(2) of the Code.

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**Reasoning:** The court reasoned that as per Section 30(2)(b), the Operational Creditor has to be paid

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**Interpretation:** Section 30(2)(b) of the IBC mandates that the resolution plan must provide for

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**Application:** In this case, since the liquidation value for the Operational Creditor was NIL,

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Rajat Metaal…
- **Respondents:** Vinayak Rathi…; Neeraj B…

## Timeline

- **2020-06-16 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Vinayak Rathi Steels…
- **2020-06-19 — Public Annou…**: A public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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