# In the matter of SEL Manufacturing Company Limited IA Nos. 703, 772 & 773-2020 in CP (IB) No.114-Chd-Pb-2017

> NCLT judgment dated 2021-02-10. Citation: TCN-2021-NCLT-03078. The State Bank of India, a financial creditor, initiated Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 10 Feb 2021
- **Citation:** TCN-2021-NCLT-03078
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sel-manufacturing-company-limited-ia-nos-703-772-773-2020-in-cp-ib-no114-chd-pb-9d800271

## Summary

### Background

The State Bank of India, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against SEL Manufacturing Company Limited (corporate debtor) by filing CP (IB) No. 114/Chd/Pb/2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the application on 2018-04-11 and declared a moratorium. The corporate debtor challenged this order before the Hon'ble High Court of Punjab and Haryana, which directed the debtor to avail the alternate remedy of appeal. The Supreme Court dismissed the debtor's SLP but extended the stay on the IRP taking over management. Subsequently, a co-director challenged the constitutionality of Section 35AB of the Banking Regulation Act, leading to an abeyance of the CIRP, which was

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## Facts

State Bank of India, a financial creditor, filed CP (IB) No. 114/Chd/Pb/2017 under Section 7 of the IBC against SEL Manufacturing Company Limited, the corporate debtor, seeking initiation of CIRP. The Adjudicating Authority admitted the application on 2018-04-11 and declared a moratorium. SEL Manufacturing Company Limited challenged the admission order before the High Court of Punjab and Haryana, which directed it to pursue an appeal. The Supreme Court dismissed the SLP but initially extended the stay on the IRP taking over management. A co-director of the corporate debtor filed CWP No. 15685 of 2018 challenging the constitutionality of Section 35AB of the Banking Regulation Act, resulting in an abeyance of the CIRP. This CWP was later withdrawn. The IRP took over the

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by the Consortium of ARR ESS Industries Private Limited & …

**Ratio:** Section 30(2) of the Insolvency and Bankruptcy Code, 2016, outlines the mandatory

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**Reasoning:** The Adjudicating Authority examined the resolution plan to ensure that it met all the

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**Interpretation:** Section 30(2) is interpreted as setting out the minimum standards that a

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**Application:** The Adjudicating Authority applied the requirements of Section 30(2) to the

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** State Bank of…
- **Respondents:** SEL Manufacturing…

## Timeline

- **2017-01-01 — CP (IB)…**: CP (IB) No. 114/Chd/Pb/2017 filed by State Bank of India against SEL Manufacturing…
- **2018-04-11 — CIRP Admi…**: Adjudicating Authority admitted CP (IB) No.…

## 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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