# In the matter of SPS Metal Cast & Alloys Limited I.A. (IB) No. 297-KB-2020 in C.P. (IB) No. 1495-KB-2018

> NCLT judgment dated 2021-11-25. Citation: TCN-2021-NCLT-00422. The case pertains to an application filed under section 30(6) and section 31(1) of the…

- **Court:** NCLT
- **Order date:** 25 Nov 2021
- **Citation:** TCN-2021-NCLT-00422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sps-metal-cast-alloys-limited-ia-ib-no-297-kb-2020-in-cp-ib-no-1495-kb-2018-c6edc580

## Summary

### Background

The case pertains to an application filed under section 30(6) and section 31(1) of the Insolvency & Bankruptcy Code, 2016, read with regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for approval of a Resolution Plan for SPS Metal Cast & Alloys Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a company petition filed by Jai Balaji Industries Limited against SPS Metal Cast & Alloys Limited under section 9 of the Insolvency and Bankruptcy Code, 2016, which was admitted on 25.06.2019. Initially, Mr. Rakesh Agarwal was appointed as the Interim Resolution Professional (IRP), but he was later replaced by Mr. Avishek Gupta as the Resolution

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## Facts

Jai Balaji Industries Limited initiated Corporate Insolvency Resolution Process (CIRP) against SPS Metal Cast & Alloys Limited by filing a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), which was admitted on 25.06.2019. Rakesh Agarwal was initially appointed as the Interim Resolution Professional (IRP) but was later replaced by Avishek Gupta. The Committee of Creditors (CoC) was formed on 16.07.2019, initially with two financial creditors, later reconstituted with four. The CIRP timeline was extended with the Adjudicating Authority's approval. The RP issued invitations for Expressions of Interest (Eol), receiving three responses, and ultimately received one Resolution Plan from Bravo Sponge Iron Private Limited on 14.01.2020. The Resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Bravo Sponge Iron Private Limited should be approved under …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016, provides for the approval of a

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**Reasoning:** The Adjudicating Authority considered the submissions made by the learned Counsel for the

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**Interpretation:** Section 31(1) mandates that if a resolution plan is approved by the CoC and

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**Application:** In this case, the CoC approved the Resolution Plan with 99.83% voting share,

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Jai Balaji…
- **Respondents:** SPS Metal Cast &…

## Timeline

- **2018-01-01 — C.P. (IB) No.…**: Filing of the Company…
- **2019-06-25 — Admission of Company…**: The Company Petition filed by Jai Balaji Industries Limited against SPS Metal Cast &…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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