# In the matter of Srei Multiple Asset Investment Trust Vs. IDBI Bank Ltd. & Ors. Company Appeal (AT) (Ins) No. 593 of 2020

> NCLAT judgment dated 2022-01-18. Citation: TCN-2022-NCLAT-00665. The appeal was filed against the order dated 02.03.2020 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLAT-00665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/srei-multiple-asset-investment-trust-vs-idbi-bank-ltd-ors-company-appeal-a4771f3b

## Summary

### Background

The appeal was filed against the order dated 02.03.2020 passed by the Adjudicating Authority (NCLT, Cuttack Bench) in CP No.352 of 2018, which approved the Resolution Plan of the 3rd Respondent (Arcelor Mittal India Private Limited). The Appellant, Srei Multiple Asset Investment Trust, challenged the approval, arguing that the 3rd Respondent was ineligible under Section 29A of the Insolvency and Bankruptcy Code (IBC) and that the Resolution Plan discriminated between shareholders.

## Facts

Srei Multiple Asset Investment Trust (the Appellant) is a trust registered under the Indian Trusts Act, 1882, and registered as a category-II Alternative Investment Fund under the SEBI Regulations, 2016. The Appellant invested Rs.60 Crore for acquiring 60 lakh equity shares of Odisha Slurry Pipe Line Infrastructure Limited (OSPIL), the 2nd Respondent and Corporate Debtor. Share Subscription Agreements were executed between the Appellant and OSPIL. Essar is another shareholder of OSPIL, holding Compulsorily Convertible Debentures (CCDs) with a principal value of Rs.50.01 Crores. CIRP was initiated against OSPIL on 14.05.2019 at the instance of IDBI Bank Ltd (1st Respondent). OSPIL's main asset is a pipeline, which was transferred from Essar to OSPIL under a Business

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## Issues and analysis

### Issue 1: Whether the 3rd Respondent (Arcelor Mittal India Private Limited) is ineligible under Section 29A …

**Ratio:** Section 29A of the IBC disqualifies certain persons from being Resolution Applicants,

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**Reasoning:** The NCLAT reasoned that the 3rd Respondent's control over Essar Steel India Limited

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**Interpretation:** The court interpreted Section 29A to mean that the disqualification applies

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**Application:** The NCLAT applied the ratio to the facts by noting that the 3rd Respondent took

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## Parties

- **Judges:** Jarat Kuma…; KanthiNar…
- **Appellants:** SREI Multiple…
- **Respondents:** Odisha Slurry…; IDBI Bank…

## Timeline

- **2018-01-01 — CP No.352/K…**: Proceedings before the…
- **2019-03-08 — Resolution Plan…**: Resolution Plan of the 3rd Respondent approved by the Learned Adjudicating Authority,…

## 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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