# In the matter of Abhinav Steel and Power Ltd. (IB)-275(ND)-2019

> NCLT judgment dated 2022-09-02. Citation: TCN-2022-NCLT-01186. The case involves an application filed by the Resolution Professional (RP) on behalf of the…

- **Court:** NCLT
- **Order date:** 2 Sept 2022
- **Citation:** TCN-2022-NCLT-01186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhinav-steel-and-power-ltd-ib-275nd-2019-05f868c5

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) on behalf of the Committee of Creditors (CoC) seeking liquidation of the Corporate Debtor, Abhinav Steel and Power Ltd., due to the absence of a resolution plan. The Corporate Insolvency Resolution Process (CIRP) was initiated following an order dated 31.07.2019 based on a petition filed by Central Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Shravan Kumar Vishnoi was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP.

## Facts

Central Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Abhinav Steel and Power Ltd. on 31.07.2019. Shravan Kumar Vishnoi was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP on 29.09.2019. Despite attempts to find a resolution plan, including re-publication of Form G and extensions of the CIRP period, no viable plan was received. The Committee of Creditors (CoC) decided in its 9th meeting on 24.07.2020 to liquidate the corporate debtor with a 100% voting share. An earlier liquidation application (3415/2020) was withdrawn on 11.09.2020 after the CoC expressed hope for a resolution plan. However, the 11th CoC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Abhinav Steel and Power Ltd., should be liquidated under Section …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of

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**Reasoning:** The court reasoned that despite multiple attempts and extensions, no viable resolution

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP process fails to produce

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**Application:** Since no resolution plan was received despite efforts, and the CoC voted for

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** Central Bank of…
- **Respondents:** Abhinav Steel and…; M/s. Abhinav…

## Timeline

- **2019-07-31 — Initiation…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2019-09-29 — RP Appoin…**: Mr. Shravan Kumar Vishnoi was confirmed…

## 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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