# In the matter of Varrsana Ispat Ltd. CA (IB) 550&650 of 2018 in CP(IB) No. 543-KB-2017

> NCLT judgment dated 2018-08-01. Citation: TCN-2018-NCLT-01029. The case involves SBER Bank versus Varrsana Ispat Ltd. Several applications (CA(IB) No.…

- **Court:** NCLT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLT-01029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-ltd-ca-ib-550650-of-2018-in-cpib-no-543-kb-2017-65cbbfc1

## Summary

### Background

The case involves SBER Bank versus Varrsana Ispat Ltd. Several applications (CA(IB) No. 550/KB/2018, CA(IB) No. 650/KB/2018, CA(IB) No.543/KB/2017) are being heard. CA(IB) No.650/KB/2018 was withdrawn as the claim was admitted by the Resolution Professional. The court noted that Central Bank and Indian Overseas Bank were not complying with an earlier order dated 2018-07-12. The court directed the filing of a contempt application if the disobedience continued. The court also issued notice to the respondent banks to explain why the directions had not been complied with.

## Facts

SBER Bank initiated insolvency proceedings against Varrsana Ispat Ltd. under Section 7 of the IBC. Several applications, including CA(IB) No. 550/KB/2018, CA(IB) No. 650/KB/2018, and CA(IB) No.543/KB/2017, were filed in connection with the insolvency resolution process. The Resolution Professional admitted the claim of the applicant in CA(IB) No. 650/KB/2018, leading to its withdrawal. Central Bank and Indian Overseas Bank allegedly failed to comply with an order dated 2018-07-12. The court observed this non-compliance and directed the filing of a contempt application. A meeting was scheduled to finalize the resolution plan.

## Issues and analysis

### Issue 1: Whether CA(IB) No.650/KB/2018 …

**Ratio:** An applicant can withdraw a claim if it has

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**Reasoning:** The court granted permission for withdrawal because the Resolution Professional had

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**Interpretation:** This demonstrates the court's acceptance of the Resolution Professional's

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**Application:** Since the Resolution Professional admitted the claim, the court allowed the

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## Parties

- **Judges:** Jinan…
- **Appellants:** SBER…
- **Respondents:** Varrsana Ispat…

## Timeline

- **2018-08-01 — Hearing…**: Hearing held on August…
- **2018-07-12 — Order Da…**: Ex-parte order was passed directing Central Bank, Indian Overseas Bank to comply with 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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