# In the matter of Kharkia Steels Private Limited IA(IB) No. 680-KB-2020 In CP(IB) NO. 1440-KB-2018

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00577. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00577
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kharkia-steels-private-limited-iaib-no-680-kb-2020-in-cpib-no-1440-kb-2018-65246261

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016 against Kharkia Steels Private Limited. Dena Bank (now Bank of Baroda) filed the application as a financial creditor. The CIRP was initiated, and Mr. Uday Narayan Mitra was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). A resolution plan submitted by Amritvani Exim Private Limited was approved by the Committee of Creditors (CoC) with a voting share of 82.75%. The RP then filed an application for the approval of the resolution plan.

## Facts

Dena Bank (now Bank of Baroda) initiated Corporate Insolvency Resolution Process (CIRP) against Kharkia Steels Private Limited by filing CP(IB) No. 1440/KB/2018. The application was admitted on September 20, 2019, and Mr. Uday Narayan Mitra was appointed as the Interim Resolution Professional (IRP). Later, Mr. Mitra was confirmed as the Resolution Professional (RP) with 95% voting share of the creditors in a meeting held on October 19, 2019. Form G, inviting Expression of Interest (EOI), was published on January 10, 2020. Amritvani Exim Private Limited submitted a resolution plan. The resolution plan contemplated an upfront payout of Rs.8.52 crores to secured creditors and Rs.0.14 crores to unsecured creditors, along with a second tranche funding of Rs.25 crores. The

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Amritvani Exim Private Limited meets the requirements of …

**Ratio:** Section 30(2) of the IBC specifies the requirements that a resolution plan must meet for

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**Reasoning:** The court considered the submissions of the Resolution Professional's counsel, who stated

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**Interpretation:** Section 30(2) is interpreted to ensure that the resolution plan is fair,

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**Application:** The court applied the requirements of Section 30(2) to the specific resolution

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## Parties

- **Judges:** Madan B.…; Harish Chander…
- **Respondents:** Kharkia Steels…

## Timeline

- **2018-01-01 — CP(IB) F…**: Dena Bank (now Bank of Baroda) filed CP(IB) No. 1440/KB/2018 for initiating CIRP against…
- **2019-09-20 — CIRP Admi…**: Application was admitted vide…

## 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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