# In the matter of Paramshakti Steel Ltd. MA 243-2018 in CP (IB)-727-MB-2017

> NCLT judgment dated 2019-02-21. Citation: TCN-2019-NCLT-04733. The case involves MA 243/2018 in CP (IB)-727/MB/2017 before the National Company Law Tribunal…

- **Court:** NCLT
- **Order date:** 21 Feb 2019
- **Citation:** TCN-2019-NCLT-04733
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramshakti-steel-ltd-ma-243-2018-in-cp-ib-727-mb-2017-a594d3ca

## Summary

### Background

The case involves MA 243/2018 in CP (IB)-727/MB/2017 before the National Company Law Tribunal (NCLT), Mumbai Bench. The Resolution Professional and Senior Counsel appeared on behalf of the Resolution Applicant. The tribunal addressed typographical errors in the resolution plan and modifications to the plan, including upfront cash payments, assignment of receivables, and priority of payments to operational creditors. The Resolution Applicant filed affidavits and undertakings related to the modified resolution plan.

## Facts

The Union Bank of India initiated a corporate insolvency resolution process against Paramshakti Steel Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional filed an affidavit in compliance with the NCLT's order. The NCLT identified and rectified typographical errors in the resolution plan. The Resolution Applicant agreed to pay Rs. 10 Cr. to the Union Bank of India as an upfront cash payment, which was incorporated into the modified resolution plan. The Resolution Applicant also agreed to assign receivables of approximately Rs. 180 crs. of the Corporate Debtor in favor of Financial Creditors. The modified resolution plan prioritized payments to operational creditors over financial creditors. The Resolution Applicant provided an

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## Issues and analysis

### Issue 1: Whether the typographical errors in the …

**Ratio:** The tribunal has the power to rectify errors in legal documents to ensure accuracy and

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**Reasoning:** The NCLT identified typographical errors in para 44(a) and Clause 44(a) of the resolution

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**Interpretation:** This demonstrates the tribunal's commitment to ensuring the accuracy of the

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**Application:** The rectification of the typographical errors ensures that the resolution plan

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## Parties

- **Judges:** V. P. S…; Ravikumar…; +1 more
- **Respondents:** PARAMSHAKTI STEEL…

## Timeline

- **2018-12-06 — Affidavit…**: Resolution Applicant filed Affidavit stating agreement to pay Rs.10 Cr. to Union Bank of…
- **2018-12-10 — Affidavit…**: Resolution Applicant filed Affidavit stating agreement to pay Rs.10 Cr. to Union Bank of…

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