# In the matter of Facor Steel Limited M.A. No. 3902-2019 in C.P. (IB) No. 18-NCLT-MB-2017

> NCLT judgment dated 2020-08-21. Citation: TCN-2020-NCLT-00805. The case involves an application (M.A. No. 3902/2019) filed in connection with a corporate…

- **Court:** NCLT
- **Order date:** 21 Aug 2020
- **Citation:** TCN-2020-NCLT-00805
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/facor-steel-limited-ma-no-3902-2019-in-cp-ib-no-18-nclt-mb-2017-97a8efc1

## Summary

### Background

The case involves an application (M.A. No. 3902/2019) filed in connection with a corporate insolvency resolution process (CIRP) against Facor Steels Limited (Corporate Debtor) under C.P. (IB) No. 18/NCLT/MB/2017. The liquidator of Facor Steels Limited sought permission from the NCLT to sell the assets of the Corporate Debtor through a private contract to R.C. Plasto Tanks and Pipes Private Limited for Rs. 15 Crores, excluding taxes, stamp duty, and cess. Vidarbha Iron and Steel Corporation Limited (VISCO), a guarantor to the lenders of the Corporate Debtor, had mortgaged its land to the Corporate Debtor, and the Corporate Debtor constructed a factory structure on this land. VISCO's resolution plan, submitted by R.C. Plasto, was approved earlier. The assets of VISCO and

…

## Facts

Facor Steels Limited is undergoing liquidation under the Insolvency and Bankruptcy Code, 2016. CS Sunil G Nanal is the liquidator. The liquidator filed an application (M.A. No. 3902/2019) seeking permission to sell the assets of Facor Steels Limited through a private contract to R.C. Plasto Tanks and Pipes Private Limited for Rs. 15 Crores. Vidarbha Iron and Steel Corporation Limited (VISCO) is a guarantor to the lenders of Facor Steels Limited and had mortgaged its land to Facor Steels Limited. Facor Steels Limited constructed a factory structure on the leased land. VISCO's resolution plan, submitted by R.C. Plasto, was approved earlier. The assets of VISCO and Facor Steels Limited are difficult to segregate. Secured creditors of Facor Steels Limited agreed to the

…

## Issues and analysis

### Issue 1: Whether the NCLT has the power to permit the sale of the Corporate Debtor's assets through a …

**Ratio:** Regulation 33 of the Insolvency and Bankruptcy Board of India (Liquidation Process)

…

**Reasoning:** The NCLT observed that the secured creditors had already given their consent for the

…

**Interpretation:** Regulation 33 provides the framework for the sale of assets during liquidation.

…

**Application:** Since the secured creditors consented to the private sale to R.C. Plasto, the

…

## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** CS Sunil G…
- **Respondents:** Facor Steels…

## Timeline

- **2017-01-01 — C.P. (IB) No.…**: Corporate Insolvency Resolution Process…
- **2018-03-12 — VISCO Petition…**: Petition under Section 10 of the Code filed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35 — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/facor-steel-limited-ma-no-3902-2019-in-cp-ib-no-18-nclt-mb-2017-97a8efc1