# In the matter of Kamineni Steel and Power India Pvt. Ltd. IA No. 260-2021 in CP (IB) No. 11-10-HDB-2017

> NCLT judgment dated 2021-10-07. Citation: TCN-2021-NCLT-00794. The case involves IA 260/2021 filed in CP(IB) No. 11/10/HDB/2017 before the National Company…

- **Court:** NCLT
- **Order date:** 7 Oct 2021
- **Citation:** TCN-2021-NCLT-00794
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kamineni-steel-and-power-india-pvt-ltd-ia-no-260-2021-in-cp-ib-no-11-10-hdb-2017-6b55d174

## Summary

### Background

The case involves IA 260/2021 filed in CP(IB) No. 11/10/HDB/2017 before the National Company Law Tribunal (NCLT), Hyderabad Bench-1. The applicant, Nimmagadda Surya Pradeep Bio-Tech Private Limited, sought reliefs under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016, concerning the liquidation of Kamineni Steel and Power India Pvt. Ltd. The corporate debtor, Kamineni Steel and Power India Pvt. Ltd., had undergone CIRP initiated on 10.02.2017, followed by liquidation proceedings initiated on 26.10.2018. The applicant was the successful bidder in an e-auction conducted by the liquidator but faced issues in making the full payment due to the COVID-19 pandemic and pending litigations.

## Facts

1. The Corporate Debtor, Kamineni Steel and Power India Pvt. Ltd., underwent Corporate Insolvency Resolution Process (CIRP) initiated on 10.02.2017 after filing an application under Section 10 of the Insolvency and Bankruptcy Code (IBC).
2. The CIRP was followed by liquidation proceedings initiated on 26.10.2018, with Mr. R. Ramakrishna Gupta appointed as the Liquidator.
3. The Liquidator conducted an e-auction for the sale of the Corporate Debtor as a going concern, with the last date for submission of the Expression of Interest (EOI) being 23.08.2020 and the e-auction date being 26.08.2020.
4. Nimmagadda Surya Pradeep Bio-Tech Private Limited was the sole participant in the e-auction and was declared the Successful Bidder after bidding Rs. 351 crores and paying an

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should direct the Liquidator not to proceed with cancelling the …

**Ratio:** The ratio is based on the principles of the Insolvency and Bankruptcy Code (IBC), which

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**Reasoning:** The reasoning is that the Successful Bidder failed to adhere to the payment schedule

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**Interpretation:** The interpretation is that the Adjudicating Authority must balance the

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**Application:** In this case, the Successful Bidder failed to make the payment within the

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** Nimmagadda Surya…
- **Respondents:** Kamineni Steel…; Kamineni Steel &…

## Timeline

- **2017-02-10 — CIRP Init…**: CIRP initiated against Kamineni Steel and Power India Pvt. Ltd. after application under…
- **2018-10-26 — Liquidation Pr…**: Liquidation proceedings initiated against Kamineni Steel and Power India Pvt. Ltd., with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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