# In the matter of Adhunik Alloys & Power Limited IA (IB) No. 800,801,881 & 983-KB-2021 in CP (IB) No. 387-KB-2017

> NCLT judgment dated 2022-05-12. Citation: TCN-2022-NCLT-02771. The case involves multiple applications (IA (IB) Nos. 800/KB/2021, 801/KB/2021, 881/KB/2021,…

- **Court:** NCLT
- **Order date:** 12 May 2022
- **Citation:** TCN-2022-NCLT-02771
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adhunik-alloys-power-limited-ia-ib-no-800801881-983-kb-2021-in-cp-ib-no-387-kb-2-2f425ed9

## Summary

### Background

The case involves multiple applications (IA (IB) Nos. 800/KB/2021, 801/KB/2021, 881/KB/2021, and 983/KB/2021) filed in connection with CP (IB) No. 387/KB/2017, which pertains to the Corporate Insolvency Resolution Process (CIRP) of Adhunik Alloys and Power Limited. State Bank of India initiated the CIRP under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Adhunik Alloys and Power Limited. The Adjudicating Authority admitted the Corporate Debtor into CIRP on August 23, 2017. A resolution plan submitted by Bhagwati Power and Steel Limited and Amalgam Steel was approved on December 7, 2018. The current applications are filed by Bhagwati Power and Steel Limited and Amalgam Steel, seeking to quash claims and notices issued by various authorities after the

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## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Adhunik Alloys and Power Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on August 23, 2017. Bhagwati Power and Steel Limited and Amalgam Steel submitted a resolution plan, which was approved on December 7, 2018. The resolution plan included a lump-sum payment of Rs.441 Crores to stakeholders. After the resolution plan's approval, various authorities, including the Commissioner of Customs (Preventive) Commissionerate, Bhubaneswar, and South Eastern Railways, issued demand notices and show cause notices to the Corporate Debtor for dues pertaining to periods prior to the approval of the resolution plan. These dues included customs duty,

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## Issues and analysis

### Issue 1: Whether the dues/outstanding can be claimed by any of the Creditors of the Corporate Debtor after …

**Ratio:** The legal principle applied is that the approval of a resolution plan by the Adjudicating

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**Reasoning:** The court reasoned that the intention behind the enactment of the IBC was to help the

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**Interpretation:** The interpretation is that Section 31(1) of the IBC, when read with the

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**Application:** In this case, the court applied the ratio to the facts by holding that the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Bhagwati Power…
- **Respondents:** Adhunik Alloys &…; Commissioner of…

## Timeline

- **2016-07-05 — Show Cause…**: Respondent No. 1 issued a show cause notice to the Corporate Debtor stating that the…
- **2016-12-15 — High Court Inte…**: The Hon'ble High Court at Calcutta passed an interim order for stay of the said show…

## 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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