# In the matter of Metkore Alloys & Industries Limited IA No. 1017-2019 in CP(IB)No. 346-7-HDB-2019

> NCLT judgment dated 2020-12-24. Citation: TCN-2020-NCLT-00008. Hero Wiretex Limited (Financial Creditor) filed CP(IB)No.346/7/HDB/2018 against Metkore Alloys…

- **Court:** NCLT
- **Order date:** 24 Dec 2020
- **Citation:** TCN-2020-NCLT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metkore-alloys-industries-limited-ia-no-1017-2019-in-cpibno-346-7-hdb-2019-05e9ebd6

## Summary

### Background

Hero Wiretex Limited (Financial Creditor) filed CP(IB)No.346/7/HDB/2018 against Metkore Alloys & Industries Limited (Corporate Debtor) under Section 7 of the IB Code. The Adjudicating Authority admitted the application on 2018-12-12 and appointed Mr. Sisir Kumar Appikatla as the Interim Resolution Professional, who was later confirmed as the Resolution Professional. The Adjudicating Authority granted an extension of CIRP beyond 180 days for 90 days from 2019-06-10. The RP received Eol from seven Prospective Resolution applicants, and two submitted Resolution Plans. The CoC rejected the offer made by Mr. Bhaskar Rao, the Resolution Applicant, in its 8th meeting held on 2019-11-02. The CoC resolved to reject the Resolution Plan and seek a liquidation order for the

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## Facts

Hero Wiretex Limited initiated corporate insolvency resolution process (CIRP) against Metkore Alloys & Industries Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2018-12-12, and Mr. Sisir Kumar Appikatla was appointed as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP). The CIRP period was extended by 90 days from 2019-06-10. Despite receiving expressions of interest (EoI) from seven prospective resolution applicants, only two submitted resolution plans. The Committee of Creditors (CoC) rejected the resolution plan submitted by Mr. Bhaskar Rao during its 8th meeting on 2019-11-02. The CoC then resolved to seek liquidation of the Corporate Debtor with 100% voting in

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Metkore …

**Ratio:** Section 33 of the I&B Code, 2016, allows the Adjudicating Authority to order

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Sub-Section

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**Interpretation:** Section 33 provides a clear pathway for liquidation when the CIRP fails to

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**Application:** In this case, the failure to receive a resolution plan and the CoC's unanimous

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## Parties

- **Judges:** K. Anantha…
- **Respondents:** Metkore Alloys &…

## Timeline

- **2018-12-12 — CIRP Init…**: Hero Wiretex Limited filed CP(IB)No.346/7/HDB/2018 against Metkore Alloys & Industries…
- **2019-02-25 — Invitation…**: RP issued invitation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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