# In the matter of Rathi Super Steel Limited I.A. 1815 (PB)-2020 in C.P. No. 1446(PB)-2018

> NCLT judgment dated 2020-06-19. Citation: TCN-2020-NCLT-01140. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Jun 2020
- **Citation:** TCN-2020-NCLT-01140
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rathi-super-steel-limited-ia-1815-pb-2020-in-cp-no-1446pb-2018-ea912dac

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) for the liquidation of the corporate debtor, M/s. Rathi Super Steel Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by Dena Bank (now Bank of Baroda), the lead bank of a consortium of 11 banks, under Section 7 of the IBC. The application was admitted on 2019-06-12. Mr. Harish Chander Arora was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors. The IRP constituted a Committee of Creditors (CoC).

## Facts

Dena Bank (now Bank of Baroda), representing a consortium of 11 banks, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Rathi Super Steel Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2019-06-12. Harish Chander Arora was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors, with a deadline of 2019-07-04. The IRP constituted a Committee of Creditors (CoC). The Resolution Professional issued Expression of Interest (EOI) on Form G for inviting Resolution Plans. The CoC rejected a proposal from M/s Ashok Garg & Associates for job work. Only two PRAs submitted EOIs, namely M/s Bansal Wire Industries

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## Issues and analysis

### Issue 1: Whether the application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 for the …

**Ratio:** Section 33(2) of the IBC allows for the initiation of liquidation proceedings when the

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**Reasoning:** The CoC voted against the resolution plan submitted by M/s. Surbhika Steel Private Ltd.

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** Since the resolution process failed and the CoC recommended liquidation, the

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## Parties

- **Judges:** SH.CH. MOHD.…; Sh. Hemant Kumar…
- **Appellants:** Harish Chander…
- **Respondents:** M/s. Rathi Super…

## Timeline

- **2018-01-01 — Application under…**: Dena Bank filed an application under Section 7 of the IBC for initiation of CIRP against…
- **2019-06-12 — Admission of Ap…**: The application under Section 7 was…

## 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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