# In the matter of SBQ Steels Ltd. (Mr. Joseph Philip Vs. Mr. Ashish Rathi & Anr.) MA No. 120-2018 in CP No. 665-IB-CB-2017

> NCLT judgment dated 2018-07-17. Citation: TCN-2018-NCLT-01129. The case involves an application (MA No.120 of 2018) filed in CP No.665/IB/CB/2017 concerning…

- **Court:** NCLT
- **Order date:** 17 Jul 2018
- **Citation:** TCN-2018-NCLT-01129
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sbq-steels-ltd-mr-joseph-philip-vs-mr-ashish-rathi-anr-ma-no-120-2018-in-cp-no-6-6b5e12b4

## Summary

### Background

The case involves an application (MA No.120 of 2018) filed in CP No.665/IB/CB/2017 concerning M/s. SBQ Steels Limited, where the applicant is the erstwhile director, Mr. Joseph Philip. The 1st respondent is the Resolution Professional, Mr. Ashish Rathi, and the 2nd respondent is Union Bank of India, the financial creditor who initiated the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was considered on 30.11.2017, heard on 13.12.2017, and reserved for orders. The Tribunal allowed the Company Petition on 29.12.2017 for the commencement of CIRP. The applicant claims the order was pronounced on 29.12.2017 but was not listed, published, or intimated to counsels, nor uploaded on the NCLT

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## Facts

M/s. SBQ Steels Limited is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Joseph Philip, the erstwhile director of SBQ Steels, filed an application (MA No.120 of 2018) seeking a declaration regarding the date of admission of the Company Petition (CP/665/IB/CB/2017) and a restraint on the Resolution Professional (RP). The Company Petition was heard on 13.12.2017 and reserved for orders, with the Tribunal allowing it on 29.12.2017. The applicant claimed the order was not properly communicated. Payments totaling INR 5,25,00,000 and INR 3,00,00,000 were made to Tulsyan NEC Limited and Tulsyan Smelters Private Limited, respectively, between 02.01.2018 and

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## Issues and analysis

### Issue 1: Whether the date of commencement of CIRP should be based on the date of admission of the …

**Ratio:** The insolvency commencement date is determined by Section 5(12) of the IBC, which

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**Reasoning:** The Tribunal reasoned that Section 7(6) of the IBC clearly states that the corporate

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**Interpretation:** The interpretation of Section 5(12) and Section 7(6) of the IBC establishes a

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**Application:** In this case, the Tribunal applied the ratio by holding that the commencement

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Mr.Joseph…
- **Respondents:** M/s. SBQ Steels…; Mr.Ashish…
- **Advocates:** Shri.Jayesh…; Shri. Geethanjalli…; +5 more

## Timeline

- **2017-11-30 — Application Consideratio…**: The application was taken for…
- **2017-12-13 — Company Petitio…**: The Company Petition was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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