# In the matter of Bhushan Steel Limited C.P. (IB) No. 801(ND)-2018

> NCLT judgment dated 2019-02-26. Citation: TCN-2019-NCLT-04684. Vistrat Real Estates Private Limited filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Feb 2019
- **Citation:** TCN-2019-NCLT-04684
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhushan-steel-limited-cp-ib-no-801nd-2018-19c7dcc0

## Summary

### Background

Vistrat Real Estates Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bhushan Steel Limited (BSL), claiming a default of Rs. 17,97,91,875/-. BSL had already undergone a Corporate Insolvency Resolution Process (CIRP), and a resolution plan submitted by Tata Steel Limited was accepted on 2018-05-15. The petitioner and BSL had entered into a Memorandum of Lease on 2015-05-01, prior to the CIRP. During the CIRP, a resolution professional appointed an independent valuer to assess the lease rental of the lease property.

## Facts

Vistrat Real Estates Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bhushan Steel Limited (BSL), claiming a default of Rs. 17,97,91,875/-. The default allegedly occurred in June 2018. BSL had already undergone a Corporate Insolvency Resolution Process (CIRP), with a resolution plan submitted by Tata Steel Limited accepted on 2018-05-15. Vistrat and BSL had entered into a Memorandum of Lease on 2015-05-01, before the CIRP commenced on 2017-07-26. The lease rental was Rs. 6,00,00,000/- per month with a 10% annual increase, and BSL had deposited Rs. 45,00,00,000/- as a refundable deposit. During the CIRP, an independent valuer assessed the lease rental, finding it higher than the market value. The Resolution

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** A petition under Section 9 is generally not maintainable if the corporate debtor has

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**Reasoning:** The Tribunal reasoned that allowing a fresh petition under Section 9 after the completion

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**Interpretation:** The interpretation of Section 9 and the overall framework of the IBC suggests

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**Application:** In this case, BSL had already undergone CIRP, and a resolution plan was

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Vistrat Real…
- **Respondents:** Bhushan Steel…

## Timeline

- **2015-05-01 — Memorandum o…**: Bhushan Steel Limited (BSL) entered into a Memorandum of Lease with Vistrat Real Estates…
- **2017-07-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Bhushan Steel…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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