# In the matter of Ispat Energy Limited IA No. 154 of 2021 in CP No. 278-IBC-NCLT-MB-2017

> NCLT judgment dated 2021-11-01. Citation: TCN-2021-NCLT-00637. The case pertains to an application filed by the Liquidator of Ispat Energy Limited, the…

- **Court:** NCLT
- **Order date:** 1 Nov 2021
- **Citation:** TCN-2021-NCLT-00637
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ispat-energy-limited-ia-no-154-of-2021-in-cp-no-278-ibc-nclt-mb-2017-19e8a8f4

## Summary

### Background

The case pertains to an application filed by the Liquidator of Ispat Energy Limited, the Corporate Debtor, under Section 54 of the Insolvency & Bankruptcy Code, 2016, seeking the dissolution of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following a Company Petition under Section 9 of the Code, which was admitted by the Tribunal on 2018-04-25. The Applicant was appointed as the Interim Resolution Professional (IRP). The IRP published a public announcement for submitting claims. The Committee of Creditors (CoC) was constituted, and meetings were held where the decision to liquidate the Corporate Debtor was made due to its negative net worth and lack of operational activity. The liquidation process involved realizing the

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## Facts

Ispat Energy Limited (the Corporate Debtor) faced Corporate Insolvency Resolution Process (CIRP) after a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 was admitted on 2018-04-25. The company's financial position was dire, with a negative net worth of Rs. 34,61,52,410 as of 2018-04-25. The company possessed no substantial assets and had ceased active business operations, its initial purpose of commissioning power plants having failed. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor. The fair value and liquidation value of the Corporate Debtor as of 2018-04-25 was assessed at Rs. 1,77,058. A significant portion of the Corporate Debtor's assets consisted of cash lying with the Bombay High Court. The Liquidator faced

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, Ispat Energy Limited, should be …

**Ratio:** Section 54 of the Insolvency & Bankruptcy Code, 2016, allows for the dissolution of a

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**Reasoning:** The Tribunal examined the documents and submissions made by the Liquidator and found that

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**Interpretation:** Section 54 is interpreted to mean that once the liquidation process is

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**Application:** In this case, the Liquidator completed the liquidation process, realized the

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Jayes…
- **Respondents:** Ispat Energy…

## Timeline

- **2018-04-25 — CIRP Init…**: The Tribunal admitted the Company Petition under Section 9, initiating the Corporate…
- **2018-05-06 — CoC Consti…**: The Interim Resolution Professional (IRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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