# In the matter of Ferro Alloys Corporation Ltd. C.P (IB) No. 251-KB-2017

> NCLT judgment dated 2018-03-08. Citation: TCN-2018-NCLT-01734. The case involves Rural Electrification Corporation Ltd. versus Ferro Alloys Corporation Ltd.…

- **Court:** NCLT
- **Order date:** 8 Mar 2018
- **Citation:** TCN-2018-NCLT-01734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ferro-alloys-corporation-ltd-cp-ib-no-251-kb-2017-a06cc6fd

## Summary

### Background

The case involves Rural Electrification Corporation Ltd. versus Ferro Alloys Corporation Ltd. An application CA(IB) No. 97/KB/2018 was filed by a resolution applicant whose expression of interest was rejected without assigning any reason. The Resolution Professional submitted that the applicant was shown as a willful defaulter in a CIBIL report. The applicant argued they were not a defaulter under Section 29A of the Code.

## Facts

Rural Electrification Corporation Ltd. initiated a corporate insolvency resolution process against Ferro Alloys Corporation Ltd. An application, CA(IB) No. 97/KB/2018, was filed by a resolution applicant whose expression of interest was rejected without a stated reason. The Resolution Professional cited a CIBIL report indicating the applicant was a willful defaulter. The applicant contested this, claiming compliance with Section 29A of the Insolvency and Bankruptcy Code. A letter from the State Bank of India was presented, stating no amount was due from the resolution applicant. The court considered whether the rejection of the resolution applicant's expression of interest was justified based on these facts.

## Issues and analysis

### Issue 1: Whether the rejection of the resolution applicant's expression of interest was justified based on …

**Ratio:** The ratio is that the rejection of an expression of interest must be based on valid legal

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**Reasoning:** The court reasoned that while the CIBIL report raised concerns, the applicant presented

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**Interpretation:** This issue involves interpreting the requirements for eligibility to submit a

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**Application:** The court applied this by directing the applicant to submit all required

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## Parties

- **Judges:** Jinan…
- **Appellants:** RURAL ELECTRIFICAT…
- **Respondents:** Ferro Alloys…
- **Advocates:** Anshumala…; Manju Bhu…; +11 more

## Timeline

- **2017-01-01 — C.P (IB) No. 25…**: Filing of the Corporate Insolvency…
- **2018-03-08 — Hearing…**: Hearing on CA(IB) No. 97/KB/2018 regarding rejection of resolution applicant's expression…

## 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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