# In the matter of Bhuwalka Steel Industries Limited I.A. No. 103-2020 in C.P. (IB) No. 228-BB-2018

> NCLT judgment dated 2020-03-11. Citation: TCN-2020-NCLT-01606. Wahaca Trading Private Limited filed I.A.No.106/2020 in C.P.(IB)No.228/BB/2018 under Section…

- **Court:** NCLT
- **Order date:** 11 Mar 2020
- **Citation:** TCN-2020-NCLT-01606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhuwalka-steel-industries-limited-ia-no-103-2020-in-cp-ib-no-228-bb-2018-b67081c7

## Summary

### Background

Wahaca Trading Private Limited filed I.A.No.106/2020 in C.P.(IB)No.228/BB/2018 under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the discharge/replacement of Mr. Shivadutt Bannanje as the Resolution Professional (RP) of the Corporate Debtor, Bhuwalka Steel Industries Limited, and the appointment of another RP. The applicant also sought to inform the IBBI of the RP's alleged misconduct and requested an interim stay on the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The CIRP was initiated following the admission of C.P.(IB)No.228/BB/2018 filed by Indu Corporation Private Limited. The RP published advertisements inviting Expressions of Interest (EOI) from prospective resolution applicants. The Committee of Creditors

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## Facts

Wahaca Trading Private Limited, an operational creditor of Bhuwalka Steel Industries Limited, filed an application seeking the replacement of the Resolution Professional (RP), Mr. Shivadutt Bannanje, alleging misconduct and unsatisfactory performance. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition by Indu Corporation Private Limited. The RP published advertisements inviting Expressions of Interest (EOI) from prospective resolution applicants. The Committee of Creditors (CoC) decided to invite Resolution Plans from those who submitted EOIs. The High Court of Karnataka granted a stay on the CIRP proceedings, restraining the RP from opening, considering, evaluating, or approving any Resolution Plans. Wahaca Trading

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## Issues and analysis

### Issue 1: Whether the Applicant, who is Operational Creditor, has locus standi to maintain the instant …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) provides a framework for the resolution of

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**Reasoning:** The Adjudicating Authority reasoned that the Resolution Professional (RP) was duly

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**Interpretation:** The interpretation of the IBC suggests that the power to replace a Resolution

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**Application:** In this case, the Applicant, as an Operational Creditor, did not demonstrate

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Wahaca Trading…
- **Respondents:** Bhuwalka Steel…; M/s Bhuwalka…

## Timeline

- **2018-01-01 — C.P.(IB)No.228…**: C.P.(IB)No.228/BB/2018 filed by M/s. Indu…
- **2019-04-08 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated in respect of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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