# In the matter of Adi Ispat Private Limited IA(IBC)-443(KB)2022 in CP(IB)-1172(KB)2019

> NCLT judgment dated 2022-09-27. Citation: TCN-2022-NCLT-00922. The case involves an application (IA(IBC)/443(KB)2022) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 27 Sept 2022
- **Citation:** TCN-2022-NCLT-00922
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adi-ispat-private-limited-iaibc-443kb2022-in-cpib-1172kb2019-e3ebd303

## Summary

### Background

The case involves an application (IA(IBC)/443(KB)2022) filed by the Resolution Professional (RP) of Adi Ispat Private Limited, the Corporate Debtor, seeking liquidation of the Corporate Debtor. The Committee of Creditors (CoC) approved the liquidation in its meeting held on 07/05/2022. CIRP was initiated against the Corporate Debtor vide order dated 22/11/2019, and Mr. Sanjay Kumar Agarwal was appointed as the Interim Resolution Professional (IRP). However, Mr. Agarwal was later apprehended by the Central Bureau of Investigation on bribery charges. Mr. Daulat Ram Jain was appointed as the Resolution Professional, replacing Mr. Sanjay Kumar Agarwal.

## Facts

Adi Ispat Private Limited is the Corporate Debtor. State Bank of India is the Financial Creditor. CIRP was initiated against the Corporate Debtor on 22/11/2019. Mr. Sanjay Kumar Agarwal was initially appointed as the IRP but was later replaced by Mr. Daulat Ram Jain due to bribery allegations against Mr. Agarwal. The CoC, with State Bank of India as the sole member, resolved to liquidate the Corporate Debtor as a going concern after resolution plans failed. The CIRP period ended on 15/05/2022. The Resolution Professional, Mr. Daulat Ram Jain, consented to act as the Liquidator. The CoC approved the liquidation with more than 66% of the voting share. The Adjudicating Authority considered the CoC's decision and the end of the CIRP period before ordering liquidation.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Adi Ispat Private Limited, should …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code mandates the Adjudicating Authority

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**Reasoning:** The CoC, with State Bank of India as the sole member, approved the liquidation of the

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**Interpretation:** Section 33(2) provides a clear directive for the Adjudicating Authority to

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**Application:** The CoC approved the liquidation, and the Resolution Professional informed the

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Respondents:** Adi Ispat Private…
- **Advocates:** Tripti Ag…; Rahul Parasrampuri…; +3 more

## Timeline

- **2019-11-22 — Initiation…**: CIRP was initiated against the Corporate Debtor, and Mr. Sanjay Kumar Agarwal was…
- **2019-11-27 — Public Annou…**: Public Announcement in…

## 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)

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