# In the matter of Bhushan Power & Steel Limited CP (IB)-202(PB)-2017

> NCLT judgment dated 2018-04-23. Citation: TCN-2018-NCLT-01512. The case involves an application filed by Liberty House Group Pte. Limited ('Liberty House')…

- **Court:** NCLT
- **Order date:** 23 Apr 2018
- **Citation:** TCN-2018-NCLT-01512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhushan-power-steel-limited-cp-ib-202pb-2017-a59e7ced

## Summary

### Background

The case involves an application filed by Liberty House Group Pte. Limited ('Liberty House') under section 60(5)(c) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to set aside the decision of the Committee of Creditors (CoC) to reject its resolution plan. The CoC rejected Liberty House's plan because it was submitted after the deadline. The main application, CP No.(IB) 202 PB of 2017, was filed by Punjab National Bank against Bhushan Power and Steel Limited ('BPSL') under section 7 of the IBC for initiating Corporate Insolvency Resolution Process (CIRP) due to a significant default. The application was admitted on 26.07.2017, and Mr. Mahender Khandelwal was appointed as Interim Resolution Professional (IRP/RP). The admission order declared a moratorium. The

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## Facts

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Bhushan Power & Steel Limited (BPSL) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP commenced on 26.07.2017, with Mr. Mahender Khandelwal appointed as the Interim Resolution Professional (IRP). A public notice was issued inviting expressions of interest (EOI) from prospective resolution applicants. The last date for submitting qualification documents was 06.10.2017. Liberty House submitted its EOI on 13.11.2017, after the deadline. The Resolution Professional (RP) requested Liberty House to submit various documents, including audited financial statements, Memorandum of Association, and a confidentiality undertaking. Liberty House failed to provide

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (CoC) was justified in rejecting the resolution plan submitted …

**Ratio:** The principle is that the rules of the game cannot be changed after the game has started.

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**Reasoning:** The NCLT reasoned that the process for submission of resolution plans started on

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**Interpretation:** This means that the CoC cannot arbitrarily change the deadline for submission

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**Application:** In this case, the NCLT found that the CoC did not provide proper public notice

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Punjab National…
- **Respondents:** Bhushan Power &…

## Timeline

- **2017-07-26 — CIRP Comm…**: Corporate Insolvency Resolution Process (CIRP) initiated against Bhushan Power & Steel…
- **2017-07-28 — Public Annou…**: Public announcement of CIRP uploaded on BPSL…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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