# In the matter of Concast Steel & Power Limited CA(IB) No.714-KB-2018, IA(IB) No.744-KB-2018 In CP (IB) No. 446-KB-2017

> NCLT judgment dated 2018-09-26. Citation: TCN-2018-NCLT-00712. Shreeshyam Metaliks Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Sept 2018
- **Citation:** TCN-2018-NCLT-00712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/concast-steel-power-limited-caib-no714-kb-2018-iaib-no744-kb-2018-in-cp-ib-no-44-14fa7a9a

## Summary

### Background

Shreeshyam Metaliks Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Concast Steel & Power Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly failed to pay an operational debt of Rs.2,58,44,678.00 plus interest at 12% p.a. The application was admitted on 07.11.2017, and Mr. Sanjay Kr. Agarwal was appointed as the Interim Resolution Professional (IRP). Public announcements of the CIRP were made in several newspapers. The Corporate Debtor had four manufacturing units, but three were shut down prior to the petition. The Committee of Creditors (CoC) replaced the IRP with Mr. Kshitiz Chhawchharia as the Resolution Professional (RP). The RP

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## Facts

Shreeshyam Metaliks Private Limited initiated CIRP against Concast Steel & Power Limited due to unpaid operational debt of Rs. 2,58,44,678.00 plus interest. Concast Steel & Power Limited has four manufacturing units, with one located in Bankura and the other three in Sodepur, Jharsuguda, and Vizag. The units in Sodepur, Jharsuguda, and Vizag were not operational since 2016-17. The Bankura unit was still operational. The CIRP commenced with Mr. Sanjay Kr. Agarwal as IRP, later replaced by Mr. Kshitiz Chhawchharia as RP. Despite inviting resolution plans, none were received. The CoC instructed the RP to apply for liquidation. The Workmen Union requested liquidation of the Bankura unit as a going concern, citing its operational status, pending sale orders worth

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Concast Steel …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, provides for the liquidation of

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**Reasoning:** The court noted that no resolution plan was received despite extending the CIRP period.

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**Interpretation:** Section 33 mandates liquidation when CIRP fails to produce a resolution plan,

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**Application:** Since no resolution plan was received for Concast Steel & Power Limited,

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Shreeshyam…
- **Respondents:** Concast Steel and…

## Timeline

- **2017-11-07 — Admission of Ap…**: The application to start CIRP of…
- **2017-11-22 — Appointment…**: Mr. Sanjay Kr. Agarwal was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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