# Approval of Resolution Plan - C P S Steel India Private Limited

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01831. The Corporate Insolvency Resolution Process (CIRP) for CPS Steel India Private Limited was…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01831
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-c-p-s-steel-india-private-limited-19ff2a5a

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) for CPS Steel India Private Limited was initiated by the Adjudicating Authority on April 25, 2022, following an application by City Union Bank Limited, a Financial Creditor, under Section 7 of the IBC, 2016. Mr. P. Eswaramoorthy was appointed as the Interim Resolution Professional. The Resolution Plan submitted by Mr. P. Adeep, Managing Partner of Sun Steel, was initially rejected by the Committee of Creditors (CoC) due to its limited value compared to the total dues. Subsequently, after revisions and deliberations, the CoC unanimously approved a Resolution Plan submitted by Mr. P. Adeep, Sun Steel. The Resolution Professional filed an application for approval of the Resolution Plan, which is the subject of this order.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against CPS Steel India Private Limited following an application by City Union Bank Limited under Section 7 of the IBC. Mr. P. Eswaramoorthy was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional by the Committee of Creditors (CoC). The CoC comprised City Union Bank Ltd, holding 100% of the voting share. The Resolution Plan submitted by Mr. P. Adeep of Sun Steel was initially rejected but later approved unanimously by the CoC after revisions. The Resolution Plan proposed a total settlement amount of Rs. 2,15,00,000.00 against total claims of Rs. 33,70,07,256.00. The plan includes infusion of cash portion and balance amount to be brought within 60 days of

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mr. P. Adeep of Sun Steel meets the requirements of …

**Ratio:** The ratio is based on the interpretation of Section 30(2) of the IBC, which specifies the

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**Reasoning:** The Adjudicating Authority reasoned that the Resolution Plan complies with Section 30(2)

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**Interpretation:** The interpretation involves understanding the scope and limitations of the

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**Application:** In this specific case, the Adjudicating Authority applied the ratio by

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Respondents:** CPS Steel India…

## Timeline

- **2022-04-25 — Initiation…**: Corporate Insolvency Resolution Process initiated by the Adjudicating Authority based on…
- **2022-05-14 — Constitution…**: The Committee of Creditors was constituted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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