# In the matter of Marutham Steel Rolling Mills Private Limited MA-1219-2019 in IA No. 259-2020 in IBA-264-2019

> NCLT judgment dated 2020-07-03. Citation: TCN-2020-NCLT-01070. The case involves an application (MA/1219/2019) filed by the Resolution Professional (RP) under…

- **Court:** NCLT
- **Order date:** 3 Jul 2020
- **Citation:** TCN-2020-NCLT-01070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/marutham-steel-rolling-mills-private-limited-ma-1219-2019-in-ia-no-259-2020-in-i-6c8eca1b

## Summary

### Background

The case involves an application (MA/1219/2019) filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking approval for the initiation of liquidation process for Marutham Steel Rolling Mills Private Limited. An intervention application (IA/259/IB/2020) was filed by Maruthanayagam Kathiresh, the Promoter and Director of the Corporate Debtor, challenging the RP's rejection of his Expression of Interest (EoI). The Corporate Insolvency Resolution Process (CIRP) was initiated on 2019-03-11, and the RP was appointed on the same day. The Committee of Creditors (CoC) was constituted, and meetings were held to discuss the resolution plan. However, the CoC ultimately decided to liquidate the Corporate Debtor due to

…

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Marutham Steel Rolling Mills Private Limited was initiated on 2019-03-11. Ravindranath Narayana Rao was appointed as the Interim Resolution Professional (IRP) on the same day. Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was constituted on 2019-03-29. The first CoC meeting was held on 2019-04-05, where the CoC resolved to appoint the Applicant as the Resolution Professional (RP). Two IBBI Registered Valuers were appointed on 2019-04-11 to value the assets of the Corporate Debtor. The fair value of the Corporate Debtor was assessed at Rs. 12,59,67,291/-, and the liquidation value was assessed at Rs. 7,97,00,000/-. The 6th CoC meeting held on 2019-08-21 discussed the

…

## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33(2) of the IBC for …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass an order requiring the

…

**Reasoning:** The CoC had unanimously resolved to liquidate the Corporate Debtor due to the failure of

…

**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

…

**Application:** The CoC's decision to liquidate, based on the lack of viable resolution plans,

…

## Parties

- **Judges:** R. VARADH…; S. VIJAYARA…
- **Appellants:** Ravindranath…
- **Respondents:** Marutham Steel…; Maruthanayagam…

## Timeline

- **2019-03-11 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for Marutham Steel Rolling Mills…
- **2019-03-11 — Appointment…**: Ravindranath Narayana Rao appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/marutham-steel-rolling-mills-private-limited-ma-1219-2019-in-ia-no-259-2020-in-i-6c8eca1b