# In the matter of Him Steel Pvt. Ltd. (IB)-494(PB)-2019

> NCLT judgment dated 2020-06-25. Citation: TCN-2020-NCLT-01115. The case involves an application filed by the Resolution Professional (RP) under Section 33(2)…

- **Court:** NCLT
- **Order date:** 25 Jun 2020
- **Citation:** TCN-2020-NCLT-01115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/him-steel-pvt-ltd-ib-494pb-2019-5f9cc231

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code (IBC). The Tribunal had previously passed an admission order on 15.07.2019, appointing an Interim Resolution Professional (IRP). The IRP issued a public announcement inviting claims from creditors on 18.07.2019, collated the claims, and constituted the Committee of Creditors (CoC). The CoC appointed the IRP as RP in its second meeting on 09.08.2019. The CoC set criteria for submission of a resolution plan and invited 'Expression of Interest' in Form-G. Two participants, Sponge Sales India Pvt. Ltd. and Shri Balaji International, submitted their EOIs. In the 4th CoC meeting, an extension of 90 days was resolved and allowed on 08.01.2020. A

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## Facts

Syndicate Bank initiated Corporate Insolvency Resolution Process (CIRP) against Him Steel Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC). An Interim Resolution Professional (IRP) was appointed, who then issued a public announcement inviting claims from creditors. The IRP collated the claims and constituted the Committee of Creditors (CoC). The CoC appointed the IRP as the Resolution Professional (RP). The CoC invited resolution plans, and Sponge Sales India Pvt. Ltd. submitted a plan. The CoC rejected the resolution plan on 17.04.2020, finding its value to be less than the liquidation value. The CoC then proposed liquidation of Him Steel Pvt. Ltd., with the RP, Ms. Reshma Mittal, to continue as liquidator. The RP filed an application under

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Sponge Sales India Pvt. Ltd. was rightly rejected by the …

**Ratio:** The Committee of Creditors (CoC) has the authority to reject a resolution plan if it

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**Reasoning:** The CoC rejected the resolution plan because its value was less than the liquidation

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**Interpretation:** This confirms the CoC's power to assess and reject resolution plans that do not

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**Application:** In this case, the CoC's decision to reject the resolution plan submitted by

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Syndicate…
- **Respondents:** Him Steel Pvt.…

## Timeline

- **2019-07-15 — Admission…**: Tribunal passed an admission…
- **2019-07-18 — Public Annou…**: IRP issued public announcement…

## 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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