# In the matter of Ramanand Steel Ltd. MA 845-2018 in CP No. 1336-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-11-02. Citation: TCN-2018-NCLT-00382. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 2 Nov 2018
- **Citation:** TCN-2018-NCLT-00382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ramanand-steel-ltd-ma-845-2018-in-cp-no-1336-ibc-nclt-mb-mah-2017-5a603f25

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Punjab National Bank (Financial Creditor) against M/s. Ramanand Steel Limited (Corporate Debtor). The application was admitted on 20.03.2018, and Mr. Dushyant Dave was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional by the Committee of Creditors (CoC). After the admission, a public announcement was made on 14.05.2018, inviting claims against the Corporate Debtor. The IRP enquired about the company's past operations and found that the factory shed and plant & machinery had been sold by the banks under SARFAESI. The only remaining asset was a piece of land admeasuring 17 acres located on Shirdi Road near Nashik.

## Facts

Punjab National Bank initiated insolvency proceedings against M/s. Ramanand Steel Limited under Section 7 of the IBC. The NCLT admitted the application on 20.03.2018, appointing Mr. Dushyant Dave as the Interim Resolution Professional (IRP), later confirmed as Resolution Professional. A public announcement was made on 14.05.2018 to invite claims. The Corporate Debtor's factory shed and plant & machinery were sold by the banks under SARFAESI. The only remaining asset was 17 acres of land near Nashik, valued at approximately Rs. 15 crores. The Corporate Debtor had outstanding dues, including MSEB dues of 1.83 Crores, Sales Tax of 1.17 Crores, and Excise dues of 7 Crores. The Corporate Debtor had been non-operational since 31.03.2012, had no employees, and was not a

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the Corporate Debtor had no operational assets, had been

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**Interpretation:** Section 33(2) provides the Adjudicating Authority with the power to order

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**Application:** The court applied the ratio of Section 33(2) to the facts of the case, noting

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Dushyant…
- **Respondents:** M/s.Ramanand…

## Timeline

- **2018-03-20 — Admission of Ap…**: The application under Section 7 of the IBC filed by Punjab National Bank against M/s.…
- **2018-03-20 — Appointment…**: Mr. Dushyant Dave was appointed as the…

## 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)

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