# In the matter of Surya Balaji Feeds Private Limited IA-1234-IB-2020 in TCP-575-IB-CB-2017

> NCLT judgment dated 2021-05-05. Citation: TCN-2021-NCLT-02200. The case involves an application filed by the Liquidator of M/s. Suryabalaji Steel Private…

- **Court:** NCLT
- **Order date:** 5 May 2021
- **Citation:** TCN-2021-NCLT-02200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surya-balaji-feeds-private-limited-ia-1234-ib-2020-in-tcp-575-ib-cb-2017-c87ae7c9

## Summary

### Background

The case involves an application filed by the Liquidator of M/s. Suryabalaji Steel Private Limited, seeking an extension of the liquidation period, which was initially set to end on May 28, 2020. The Corporate Insolvency Resolution Process (CIRP) had commenced earlier, and the applicant was appointed as the Interim Resolution Professional. The factory was closed, and the State Bank of India had taken possession of the building. The applicant, along with appointed Registered Valuers, assessed the value of the assets. Despite efforts to revive the Corporate Debtor, no resolution plan was received. The State Bank of India, as the sole Financial Creditor, requested the Tribunal to liquidate the Corporate Debtor.

## Facts

M/s. Suryabalaji Steel Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an order dated 05.10.2017. M.S. Viswanathan was appointed as the Interim Resolution Professional and later as Liquidator. The factory was closed, and State Bank of India took possession of the building. An attempt to revive the company failed, leading to a liquidation order dated 29.05.2018. A public announcement was made on 13.06.2018. A forensic audit revealed accounting deviations, with Rs. 12.35 crore transferred to group concerns. The liquidator attempted to sell assets, including plant and machinery, through e-auctions, but faced challenges selling the land due to it being leased from SIPCOT. The initial liquidation period was set to end on 28.05.2020. The

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## Issues and analysis

### Issue 1: Whether the extension of the liquidation period for M/s. Suryabalaji Steel Private Limited should …

**Ratio:** Regulation 47A of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The Adjudicating Authority considered the documents placed before it and acknowledged

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**Interpretation:** Regulation 47A is interpreted to mean that any delays directly attributable to

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**Application:** The Adjudicating Authority applied Regulation 47A to the facts of the case,

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M.S. Viswa…
- **Respondents:** Suryabalaji Steel…
- **Advocates:** V. Maniv…

## Timeline

- **2017-10-05 — Commencement…**: Adjudicating Authority ordered commencement…
- **2017-10-23 — Appointment of Interim…**: The applicant was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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