# In the matter of Varrsana Ispat Ltd. C.P. (IB) No. 543-KB-2017

> NCLT judgment dated 2019-08-07. Citation: TCN-2019-NCLT-02054. The case involves an application filed by SBER Bank, the Financial Creditor, to initiate the…

- **Court:** NCLT
- **Order date:** 7 Aug 2019
- **Citation:** TCN-2019-NCLT-02054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-ltd-cp-ib-no-543-kb-2017-15ce98b3

## Summary

### Background

The case involves an application filed by SBER Bank, the Financial Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against Varrsana Ispat Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was initially admitted on 16.11.2017. Mr. Anil Goel was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). However, the Committee of Creditors (CoC) was unable to approve any resolution plan due to the attachment of the Corporate Debtor's assets by the Deputy Director of Enforcement. The RP's request for de-attachment was not granted by the Adjudicating Authority (NCLT) or the Supreme Court. The CIRP period expired on 13.08.2018, and despite

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## Facts

SBER Bank initiated CIRP against Varrsana Ispat Limited under Section 7 of the IBC, 2016. The application was admitted on 16.11.2017. Anil Goel was appointed as IRP and later RP. The CIRP period expired on 13.08.2018. Eight CoC meetings were held, but no resolution plan was approved due to the attachment of the Corporate Debtor's assets by the Deputy Director of Enforcement. The RP's application for de-attachment was dismissed by the NCLT on 12.07.2018. The RP appealed to the Appellate Tribunal (Company Appeal (AT) (Insolvency) No. 493 of 2018) and the Supreme Court. The Supreme Court confirmed the order of the appellate authority on 22.07.2019. The RP requested an adjournment pending the disposal of the appeal before the appellate authority, but the court declined.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, provides for liquidation when a

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**Reasoning:** The CoC failed to approve any resolution plans within the CIRP period, and the RP failed

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**Interpretation:** The court interpreted Section 33 of the I&B Code to mean that liquidation

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**Application:** Given the failure of the CIRP process and the absence of a resolution plan, the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** SBER…
- **Respondents:** Varrsana Ispat…; Varrsana Ispat…
- **Advocates:** Aniruddh…; Anil So…; +11 more

## Timeline

- **2016-01-01 — Enactment of Insolvency and Bankruptcy Code,…**: The Insolvency and…
- **2017-11-16 — Admission of CIRP…**: The NCLT admitted the application for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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