# In the matter of Shrid Metal Technologies Pvt. Ltd. M.A. No. 285-2019 in CP No. 486-I&BP-NCLT-MAH-2018

> NCLT judgment dated 2019-07-26. Citation: TCN-2019-NCLT-02272. The case involves an application filed by the Resolution Professional (RP) under Section 31 of…

- **Court:** NCLT
- **Order date:** 26 Jul 2019
- **Citation:** TCN-2019-NCLT-02272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shrid-metal-technologies-pvt-ltd-ma-no-285-2019-in-cp-no-486-ibp-nclt-mah-2018-622acee2

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 31 of the Insolvency and Bankruptcy Code, 2016 (Code), seeking approval of a Resolution Plan for BMSS Steel Industries Pvt. Ltd. The Corporate Debtor was put under Corporate Insolvency Resolution Process (CIRP) by an order of the Adjudicating Authority dated 2018-04-16. Mr. V.S. Rao Nagulapati was appointed as Interim Resolution Professional (IRP) and later confirmed as Resolution Professional (RP) by the Committee of Creditors (CoC). The RP conducted the CIRP, inviting claims from creditors, appointing valuers, and publishing advertisements for Expression of Interest (EOI). Two Resolution Plans were received, one from Wather Investment and Trading Co. Pvt. Ltd. and another from

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## Facts

BMSS Steel Industries Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) initiated by an order dated 2018-04-16. Mr. V.S. Rao Nagulapati was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP invited claims from creditors and received two Resolution Plans, one from Wather Investment and Trading Co. Pvt. Ltd. and another from Pradeep Metals Ltd. The Committee of Creditors (CoC) rejected the plan from Pradeep Metals Ltd. because the resolution amount was significantly lower than the liquidation value of the Corporate Debtor (Rs. 1.92 crores vs. Rs. 4.32 crores). Wather Investment and Trading Co. Pvt. Ltd. submitted a revised plan, which was approved by the CoC on 2019-01-03. The approved

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## Issues and analysis

### Issue 1: Whether the Resolution Plan approved by the Committee of Creditors (CoC) meets the requirements of …

**Ratio:** Section 31(1) of the Code states that if the Adjudicating Authority is satisfied that the

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 30 and 31 of the Code,

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**Interpretation:** This section mandates that the Adjudicating Authority must ensure the

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**Application:** The court applied the ratio by reviewing the resolution plan and confirming

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** BMSS Steel…; Shrid Metal…

## Timeline

- **2018-04-16 — CIRP Init…**: Corporate Debtor was put under Corporate Insolvency Resolution Process (CIRP) by an order…
- **2018-05-18 — RP Confir…**: Mr. V.S. Rao Nagulapati confirmed as Resolution Professional (RP) by the Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30 — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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