# In the matter of State Bank of India Vs. Adhunik Steels Ltd. CA(AT)(Ins) No. 1192 of 2019

> NCLAT judgment dated 2020-01-20. Citation: TCN-2020-NCLAT-00521. The case involves an appeal against an order related to the Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 20 Jan 2020
- **Citation:** TCN-2020-NCLAT-00521
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-adhunik-steels-ltd-ca-2fec0f73

## Summary

### Background

The case involves an appeal against an order related to the Corporate Insolvency Resolution Process (CIRP) initiated against 'M/s Adhunik Alloys and Power Ltd.' The resolution plan has been approved, and the appellant's claim ('State Bank of India') has been addressed within the plan. The impugned order, dated 4th September 2019, had disposed of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by ‘State Bank of India' against ‘M/s Adhunik Steels Ltd.' as being not maintainable.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against 'M/s Adhunik Alloys and Power Ltd.' (Principal Borrower). A resolution plan was approved. 'State Bank of India' (Appellant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against 'M/s Adhunik Steels Ltd.' (Corporate Guarantor). The application was disposed of as not maintainable. The Appellant's claim has been taken care of in the resolution plan. The matter is settled with the 'M/s Adhunik Alloys and Power Ltd.' (Principal Borrower). The Corporate Guarantor is ‘M/s Adhunik Steels Ltd.’. The order was passed on 4th September, 2019. The appellate tribunal relied on the judgment in ‘Vishnu Kumar Agarwal Vs. Piramal Enterprises Ltd.’. The Supreme Court decision in

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## Issues and analysis

### Issue 1: Whether the appellate tribunal should interfere with the impugned order dated 4th September, 2019, …

**Ratio:** The ratio is based on the principle that once a resolution plan is approved and the

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**Reasoning:** The court reasoned that since the resolution plan had been approved and the appellant's

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where a

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** State Bank of…
- **Respondents:** Adhunik Steels…

## Timeline

- **2019-09-04 — Impugned Ord…**: Date of the impugned order whereby application under Section 7 of the Insolvency and…
- **2019-01-08 — Judgment in Vishnu Kumar Agarwal Vs. Piramal…**: Company Appeal No. 346 and 347 of 2018…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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