# In the matter of SPS Ispat & Power Limited IA No. 1438-KB-2020 in CP (IB) No. 265-KB-2019

> NCLT judgment dated 2021-01-19. Citation: TCN-2021-NCLT-03267. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-NCLT-03267
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sps-ispat-power-limited-ia-no-1438-kb-2020-in-cp-ib-no-265-kb-2019-228a83a4

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, SPS Ispat & Power Limited, due to the absence of a viable resolution plan. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by Cecil Antony & Ors. (Trustees of NSHM Academy and Hari Charan Garg Charitable Trust) under Section 7 of the Insolvency and Bankruptcy Code, 2016. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made to invite claims. The Committee of Creditors (CoC) was constituted, and invitations for Expression of Interest (EoI) were published multiple times. A resolution plan was received from NSHM Academy but was later withdrawn. With no other

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## Facts

Cecil Antony & Ors. (Trustees of NSHM Academy and Hari Charan Garg Charitable Trust) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against SPS Ispat & Power Limited, leading to the initiation of CIRP. The Adjudicating Authority ordered the initiation of CIRP on 2019-08-08. Santosh Choraria was appointed as the Interim Resolution Professional (IRP). Public announcement in Form 'A' was made on 2019-08-09, with a last date for submission of claims as 2019-08-22. The Committee of Creditors (CoC) was constituted on 2019-08-31, comprising six financial creditors. Rakesh Kumar Agarwal was appointed as the RP, replacing the IRP, confirmed on 2019-10-29. An Invitation for Expression of Interest (EoI) was published on 2019-10-21, with the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, SPS Ispat & Power Limited, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, read with sub-section (1)

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**Reasoning:** The court reasoned that the advertisements inviting EoIs were published thrice, and the

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if the CIRP fails to

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**Application:** In this case, the court applied the ratio by considering the fact that no

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Cecil Antony &…
- **Respondents:** SPS Ispat & Power…

## Timeline

- **2019-08-08 — CIRP Initiati…**: Adjudicating Authority ordered initiation of…
- **2019-08-09 — Public Annou…**: Public announcement in Form…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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