# In the matter of BRG Iron & Steel Co. Private Limited CA(IB) No. 1713,1721,1723,1725,1731 & 1833-KB-2019

> NCLT judgment dated 2020-02-03. Citation: TCN-2020-NCLT-02101. Uco Bank, a financial creditor, filed an application CP(IB)No.513/KB/2018 under Section 7 of…

- **Court:** NCLT
- **Order date:** 3 Feb 2020
- **Citation:** TCN-2020-NCLT-02101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brg-iron-steel-co-private-limited-caib-no-17131721172317251731-1833-kb-2019-dfce8709

## Summary

### Background

Uco Bank, a financial creditor, filed an application CP(IB)No.513/KB/2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process against BRG Iron and Steel Co. Private Limited, the corporate debtor. The application was admitted on March 5, 2019, and Mr. Kannan Tiruvengadam was appointed as the Interim Resolution Professional (IRP), later becoming the Resolution Professional (RP). The RP failed to get any resolution plan approved by the Committee of Creditors (CoC) and filed a Final Progress Report on January 30, 2020, recommending liquidation.

## Facts

Uco Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against BRG Iron and Steel Co. Private Limited. The application was admitted on March 5, 2019, and Mr. Kannan Tiruvengadam was appointed as the Interim Resolution Professional (IRP). Later, he was appointed as the Resolution Professional (RP). The RP published notices inviting resolution plans, and several prospective resolution applicants expressed interest, including Jindal Stainless (Hissar) Limited and Rimjhim Ispat Limited. Jindal Stainless's plan was found non-compliant with Section 30(2) of the Code. The Committee of Creditors (CoC) considered a modified plan from Rimjhim Ispat Limited, but it was rejected with

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, BRG Iron and Steel Co. Private Limited, should be liquidated due to …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation

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**Reasoning:** The Committee of Creditors (CoC) did not approve any resolution plan, and the Resolution

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**Interpretation:** Section 33(1)(a) provides the legal basis for liquidation when the CIRP fails

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**Application:** Since no resolution plan was approved, and the RP recommended liquidation, the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** UCO B…
- **Respondents:** BRG Iron and…; C. A. Kannan…

## Timeline

- **2018-01-01 — CP(IB)No.513/KB/2018…**: Uco Bank filed CP(IB)No.513/KB/2…
- **2019-03-05 — Application A…**: The application was admitted, and Mr.…

## 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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