# In the matter of Salasar Steel and Power Ltd. IA(IB) No. -CTB-2020 In T.P. No. 203/CTB/2019 Arising out of CP(IB) No. 1411-MB-2018

> NCLT judgment dated 2020-07-01. Citation: TCN-2020-NCLT-01091. Raigarh Ispat and Power Pvt. Ltd., a proposed resolution applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 1 Jul 2020
- **Citation:** TCN-2020-NCLT-01091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/salasar-steel-and-power-ltd-iaib-no-ctb-2020-in-tp-no-203ctb2019-arising-out-of-7c06dd27

## Summary

### Background

Raigarh Ispat and Power Pvt. Ltd., a proposed resolution applicant, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the rejection of its resolution plan by the Committee of Creditors (CoC). The CoC deemed the applicant ineligible under Section 29A of the 'I & B Code'. The Corporate Debtor, Salasar Steel and Power Ltd., is undergoing Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) alleged loan defaults in another company, Ind Synergy Ltd. (ISL), where a Director of the Applicant is also a Director. The RP sought clarification on the default status, and the applicant clarified that defaults prior to 31.3.2018 were taken over by an asset reconstruction company. The RP did not place the

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## Facts

Raigarh Ispat and Power Pvt. Ltd. (Applicant) submitted a resolution plan for Salasar Steel and Power Ltd. (Corporate Debtor), which is undergoing CIRP. The Resolution Professional (RP) alleged that Ind Synergy Ltd. (ISL), where a Director of the Applicant is also a Director, had loan defaults. The RP sought clarification on the default status. The Applicant clarified that defaults prior to 31.3.2018 were taken over by an asset reconstruction company. The RP denied the Applicant an opportunity to explain and did not place the plan before the Committee of Creditors (CoC). The CoC rejected the application, deeming the applicant ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016. The applicant argued that the RP does not have the power to reject or

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) has the power to reject or approve a resolution plan …

**Ratio:** The Resolution Professional (RP) is not empowered to take any decision on the resolution

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**Reasoning:** The court considered the applicant's argument that the RP contravened the provisions of

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**Interpretation:** The RP's role is primarily to facilitate the resolution process by ensuring

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**Application:** In this case, the court found that the RP had placed the resolution plan before

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## Parties

- **Judges:** Jinan…
- **Appellants:** RAIGARH ISPAT AND…
- **Respondents:** Salasar Steel and…; Rajesh Jhunjhunwal…

## Timeline

- **2018-01-01 — CP(IB) No. 141…**: CP(IB) No. 1411/MB/2018 was…
- **2019-09-27 — CIRP Ord…**: Corporate Insolvency Resolution Process (CIRP) order was passed for Salasar Steel and…

## 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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