# In the matter of State Bank of India Vs M/s Adhunik Alloys & Power Ltd CA(IB) No 1086 & 1092 KB 2018 in  CP(IB) No 387 KB 2017

> NCLT judgment dated 2018-12-07. Citation: TCN-2018-NCLT-00145. State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Adhunik…

- **Court:** NCLT
- **Order date:** 7 Dec 2018
- **Citation:** TCN-2018-NCLT-00145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-ms-adhunik-alloys-power-ltd-ca-2f401505

## Summary

### Background

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Adhunik Alloys and Power Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 23/08/2017, and Mr. Sumit Binani was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP received four resolution plans from Edelweiss Asset Reconstruction Company Limited, Orissa Metaliks Private Ltd., Bhagwati Power and Steel Limited (BPSL), and SREI Infrastructure Finance Limited. Initially, BPSL's plan was the highest scorer, but after re-scoring, SREI emerged as the highest scorer. BPSL challenged SREI's eligibility under Section 29A of the IBC. SREI filed an appeal before the NCLAT, which directed that

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## Facts

State Bank of India initiated CIRP against Adhunik Alloys & Power Ltd. The application was admitted on 23/08/2017, appointing Sumit Binani as IRP and later RP. Four resolution plans were received. BPSL's plan initially scored highest, but SREI emerged as the highest after re-scoring. BPSL challenged SREI's eligibility under Section 29A of IBC. SREI appealed to NCLAT, which directed all plans to be placed before CoC. CoC approved BPSL's plan with 77.2% vote. IFCI objected to the distribution methodology, alleging discriminatory treatment under Section 30(2) of I&B Code. IFCI claimed the methodology created classes among financial creditors based on security interest, violating IBC principles. IFCI argued that under voting share distribution, it would receive

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## Issues and analysis

### Issue 1: Whether C.A. (IB) No. …

**Ratio:** The principle of estoppel prevents a party from taking a contradictory stance to what

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**Reasoning:** The court reasoned that IFCI, having voted in favor of the disputed methodology, could

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**Interpretation:** The court interpreted the principle of estoppel to mean that a party cannot

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**Application:** The court applied the principle of estoppel to the facts of the case, finding

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## Parties

- **Judges:** Jinan…
- **Appellants:** State Bank of…
- **Respondents:** Adhunik Alloys &…; M/s. Adhunik…
- **Advocates:** Jishnu Cho…; Sidhartha…; +10 more

## Timeline

- **2017-08-23 — Application A…**: Application filed by SBI was admitted, initiating CIRP against Adhunik Alloys and Power…
- **2017-08-23 — Appointment…**: Mr. Sumit Binani was appointed as the…

## 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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