# In the matter of A. P. Steel Re Rolling Mill Limited

> NCLT judgment dated 2024-11-19. Citation: TCN-2024-NCLT-00197. The case involves an application filed by the Resolution Professional (RP) of A.P. Steel Re…

- **Court:** NCLT
- **Order date:** 19 Nov 2024
- **Citation:** TCN-2024-NCLT-00197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/a-p-steel-re-rolling-mill-limited-30c0fb95

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of A.P. Steel Re Rolling Mill Limited, seeking an order for liquidation of the Corporate Debtor. The Corporate Debtor faced financial difficulties, ceased operations in FY 2022, had no cash flow, and no employees were engaged. An operational creditor, M/s. S.N. Steels, Palakkad, had initiated CIRP under Section 9 of IBC, 2016, due to a default of Rs.2,64,38,134/- plus 12% interest. The Committee of Creditors (CoC), with Federal Bank holding 100% voting rights, resolved to proceed with liquidation under Section 33(2) of the IBC, 2016.

## Facts

M/s. S.N. Steels, Palakkad, an operational creditor, filed a petition under Section 9 of IBC, 2016, against A.P. Steel Re Rolling Mill Limited (Corporate Debtor) due to an operational debt default of Rs.2,64,38,134/- plus 12% interest from 2022-03-24, amounting to Rs.60,88,914/- as of 2024-02-24. The Tribunal admitted the petition on 2024-05-02 and appointed the Applicant as the RP. A public announcement was made on 2024-05-04, inviting claims from creditors. The Corporate Debtor received claims totaling Rs.316,214,321/-, of which Rs.234,347,025/- was admitted by the RP. The RP found that the Corporate Debtor had ceased operations in FY 2022, had no cash flow, and no employees were engaged. The CoC, with Federal Bank holding 100% voting rights, resolved on 2024-06-10

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, A.P. Steel Re Rolling Mill Limited, should be liquidated under …

**Ratio:** Section 33(1)(a) of the IBC, 2016 mandates that the Adjudicating Authority shall pass an

…

**Reasoning:** The CoC, with a 100% majority, decided to liquidate the Corporate Debtor. The

…

**Interpretation:** Section 33(2) of the IBC, 2016, allows for liquidation based on the CoC's

…

**Application:** The CoC's decision, supported by a 100% majority, and the absence of a

…

## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Jossy Steephen…
- **Respondents:** A.P. Steel Re…

## Timeline

- **2022-03-24 — Operational Deb…**: Operational debt default of…
- **2024-02-24 — Debt Amo…**: The debt amounted to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/a-p-steel-re-rolling-mill-limited-30c0fb95