# In the matter of Kalptaru Steel Rolling Mills Pvt. Ltd.
IA-2123(PB)-2020 in (IB)-563(PB)-2018

> NCLT judgment dated 2020-11-19. Citation: TCN-2020-NCLT-00241. The case involves an application filed by the successful Resolution Applicant (SRA) seeking…

- **Court:** NCLT
- **Order date:** 19 Nov 2020
- **Citation:** TCN-2020-NCLT-00241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kalptaru-steel-rolling-mills-pvt-ltd-ia-2123pb-2020-in-ib-563pb-2018-78bb539f

## Summary

### Background

The case involves an application filed by the successful Resolution Applicant (SRA) seeking compliance with the approved Resolution Plan for the Corporate Debtor, Kalpatru Steel Rolling Mills Pvt. Ltd. The SRA requested the release of original title deeds of the property mortgaged with Andhra Pradesh State Financial Corporation (APSFC), the answering respondent/dissenting financial creditor. APSFC had filed an appeal against the approval of the Resolution Plan before the NCLAT, but no stay was granted. APSFC argued that the Andhra Bank's claim was time-barred and the distribution of the plan value was not proportionate to the assets mortgaged. The NCLT had previously rejected these contentions and approved the resolution plan.

## Facts

Mr. Prabhakar Nandiraju is the Resolution Professional and Chairman of the Monitoring Committee of Kalpatru Steel Rolling Mills Pvt. Ltd. Andhra Pradesh State Financial Corporation is the respondent. Andhra Bank had filed a company petition which was admitted on 2018-08-14. Andhra Pradesh State Financial Corporation (APSFC) filed an appeal against the approval of the Resolution Plan before the NCLAT, but no stay was granted. The Resolution Applicant (SRA) deposited the amount payable to the dissenting financial creditor (APSFC) in the account of the Andhra Pradesh State Financial Corporation. APSFC put the deposited money in a Fixed Deposit as the appeal was pending before the NCLAT. APSFC also filed a Special Leave Petition (SLP) challenging the admission of the

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## Issues and analysis

### Issue 1: Whether the Andhra Pradesh State Financial Corporation (APSFC) should be directed to release the …

**Ratio:** When a resolution plan has been approved and the SRA has complied with its terms and

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**Reasoning:** The court reasoned that the SRA had complied with the terms and conditions of the

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**Interpretation:** This issue concerns the obligations of a dissenting financial creditor after a

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Prabhakar…
- **Respondents:** Kalpatru Steel…; Andhra Pradesh…

## Timeline

- **2018-08-14 — Admission of Company…**: The Company Petition filed by…
- **2020-02-14 — Approval of Resolution…**: Resolution Plan approved…

## 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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