# In the matter of Zion Steel Ltd. CP (IB) No. 372-KB-2017

> NCLT judgment dated 2018-07-10. Citation: TCN-2018-NCLT-01169. The State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Zion…

- **Court:** NCLT
- **Order date:** 10 Jul 2018
- **Citation:** TCN-2018-NCLT-01169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zion-steel-ltd-cp-ib-no-372-kb-2017-172e4920

## Summary

### Background

The State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Zion Steel Limited under Section 7 of the Insolvency & Bankruptcy Code, 2016, due to the corporate debtor's default in paying loan installments. The Adjudicating Authority admitted the CIRP on 03.08.2017 and imposed a moratorium under Section 14 of the I&B Code. Mr. Sumit Binani was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional. Public announcement of CIRP was made on 21.09.2017, leading to the submission of claims by financial and operational creditors. The initial 180-day CIRP period was extended by 90 days. The Committee of Creditors (CoC) considered multiple resolution plans, including one from Edelweiss Assets

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## Facts

State Bank of India (SBI) initiated Corporate Insolvency Resolution Process (CIRP) against Zion Steel Limited due to defaults in loan repayment. SBI filed the application under Section 7 of the Insolvency & Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the application on 03.08.2017 and imposed a moratorium. Sumit Binani was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). A public announcement of the CIRP was made on 21.09.2017, inviting claims from creditors. The initial 180-day CIRP period was extended by 90 days. Edelweiss Assets Reconstruction Ltd. submitted a resolution plan, which was later annulled by the CoC. Liberty House Group Pte Ltd. submitted a resolution plan that was

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Liberty House Group Pte Ltd. meets the mandatory …

**Ratio:** Section 30(2) of the Insolvency & Bankruptcy Code, 2016, specifies the mandatory

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**Reasoning:** The Adjudicating Authority examined the resolution plan and found that it complied with

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**Interpretation:** Section 30(2) sets a minimum threshold for resolution plans, ensuring that

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**Application:** The Adjudicating Authority applied the provisions of Section 30(2) to the

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## Parties

- **Judges:** Madan B.…
- **Respondents:** Zion Steel…

## Timeline

- **2017-08-03 — Admission o…**: The Adjudicating Authority admitted the CIRP against the Corporate Debtor under section 7…
- **2017-09-21 — Public Announcement of…**: Mr. Binani issued public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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