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

> NCLT judgment dated 2019-08-07. Citation: TCN-2019-NCLT-02050. 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-02050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varrsana-ispat-ltd-cp-ib-no-543-kb-2017-f9ff39ab

## 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). The CIRP period expired on 13.08.2018. Despite efforts, 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 of assets was not granted by the Adjudicating Authority (NCLT) or the Supreme

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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/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 request for de-attachment was denied by the NCLT and the Supreme Court. The RP filed an appeal before the Appellate Tribunal, which was also unsuccessful. The Hon'ble Supreme Court confirmed the order of appellate authority on 22.07.2019. The RP requested an exclusion of the period of litigation, which was denied. The CoC was dissatisfied with the terms of the resolution plan. The RP filed a final

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for excluding the period of litigation …

**Ratio:** The court has the discretion to exclude certain periods from the CIRP if justified.

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**Reasoning:** The court found no justifiable reason to exclude the period of CIRP solely based on the

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**Interpretation:** Section 65(5)(c) of the Insolvency and Bankruptcy Code, 2016 allows for

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**Application:** In this case, the court determined that the pendency of the appeal before the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** SBER…
- **Respondents:** Varrsana Ispat…; Varrsana Ispat…

## Timeline

- **2016-01-01 — Enactment of Insolvency and Bankruptcy Code,…**: The Insolvency and Bankruptcy…
- **2017-11-16 — Admission of CIRP…**: The application filed by SBER Bank for initiating CIRP against Varrsana Ispat Limited was…

## 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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