# In the matter of Orissa Manganese & Minerals Limited CA (IB) Nos. 398,402,470 & 509-2018 In CP(IB) No.371-KB-2017

> NCLT judgment dated 2018-06-22. Citation: TCN-2018-NCLT-01233. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 22 Jun 2018
- **Citation:** TCN-2018-NCLT-01233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orissa-manganese-minerals-limited-ca-ib-nos-398402470-509-2018-in-cpib-no371-kb-8606bc0c

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of Orissa Manganese & Minerals Limited (OMML). State Bank of India initiated CIRP under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP process involved inviting resolution plans, negotiations with bidders, and ultimately, the approval of a resolution plan by the Committee of Creditors (CoC). Edelweiss Asset Reconstruction Company Limited (EARC) and District Mining Officer, Department of Mining and Geology, Jharkhand, filed applications challenging various aspects of the CIRP, including the ranking of bidders, non-admission of claims, and the conduct of the Resolution Professional (RP).

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Orissa Manganese & Minerals Limited (OMML) under Section 7 of the Insolvency and Bankruptcy Code, 2016. Sumit Binani was appointed as the Interim Resolution Professional (IRP). The initial CIRP period of 180 days was extended by 90 days. The Resolution Professional received three resolution plans from Edelweiss Asset Reconstruction Company Limited (EARC), Orissa Mining Private Limited (OMPL), and Ghanashyam Mishra & Sons Private Limited (GMSPL). The CoC initially declared EARC as the H1 bidder but later rejected their plan. After negotiations with GMSPL, the CoC approved their resolution plan with more than 89.23% voting share. EARC filed an application challenging the approval

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## Issues and analysis

### Issue 1: Whether the resolution professional or CoC committed any illegality or irregularity in not ranking …

**Ratio:** The selection of H1 bidder was done as per the evaluation parameter and the evaluation

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**Reasoning:** The CoC ranked the applicant as H-3 and GMSPL has been declared as the H-1 bidder by way

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**Interpretation:** The ranking of bidders is a matter of commercial wisdom of the CoC and the

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**Application:** The Adjudicating Authority found that the ranking of GMSPL as H1 bidder was

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** State Bank of…
- **Respondents:** Orissa Manganese…

## Timeline

- **2017-08-03 — Application A…**: Application under Section 7 of IBC admitted, and Shri Sumit Binani appointed as Interim…
- **2017-09-04 — IRP Appointment…**: Appointment of IRP confirmed by…

## 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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