# In the matter of Divine Alloys & Power Co. Ltd. IA (IB) 136 & 932-KB-2020 in CP (IB) 1412-KB-2018

> NCLT judgment dated 2021-05-11. Citation: TCN-2021-NCLT-02168. The case involves two applications, IA (IB) 932/KB/2020 filed by Sargam Vision Private Limited,…

- **Court:** NCLT
- **Order date:** 11 May 2021
- **Citation:** TCN-2021-NCLT-02168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/divine-alloys-power-co-ltd-ia-ib-136-932-kb-2020-in-cp-ib-1412-kb-2018-ab2da769

## Summary

### Background

The case involves two applications, IA (IB) 932/KB/2020 filed by Sargam Vision Private Limited, a Resolution Applicant (RA), seeking direction upon the Resolution Professional (RP) to conduct revaluation of Divine Alloys & Power Co Ltd, the Corporate Debtor, and IA (IB) 136/KB/2020 filed by the RP for liquidation of the Corporate Debtor due to the Committee of Creditors (CoC) not approving any Resolution Plan. The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor on 07.03.2019. The RA submitted multiple enhanced offers, but the CoC repeatedly requested further increases. The CoC ultimately decided to liquidate the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Divine Alloys & Power Co Ltd on 07.03.2019. Sargam Vision Private Limited, a Resolution Applicant (RA), sought a revaluation of the Corporate Debtor's assets, arguing that the COVID-19 pandemic had negatively impacted the market. The RA submitted multiple resolution plans, but the Committee of Creditors (CoC) repeatedly requested higher offers. The final offer submitted by the RA before the CoC on 19.03.2020 was ₹102 crore. The CoC ultimately decided to liquidate the Corporate Debtor, with 97.21% of the voting share in favor of liquidation. The Resolution Professional (RP) then filed an application for liquidation. The 180-day CIRP period had expired, and no resolution plan was in sight. The

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## Issues and analysis

### Issue 1: Whether the Resolution Professional should be directed to conduct a revaluation of the Corporate …

**Ratio:** There is no provision in the Insolvency and Bankruptcy Code for revaluation of the

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**Reasoning:** The court reasoned that the valuation of assets is primarily for the benefit of the CoC

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**Interpretation:** The court interpreted the relevant provisions of the IBC to mean that

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**Application:** The court applied this reasoning to the specific facts, noting that the RA had

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Sargam Vision…
- **Respondents:** Divine Alloys &…; Rajesh Kumar…
- **Advocates:** Joya…; Manju Bhu…; +3 more

## Timeline

- **2019-03-07 — Initiation…**: The Adjudicating Authority directed the initiation of the Corporate Insolvency Resolution…
- **2019-08-30 — Extension of CI…**: The Adjudicating Authority approved the extension of the CIRP period for further ninety…

## 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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