# In the matter of Electrosteel Steel Limited IA (IB) No. 73,307,310,388,399,400,401,430,431443,441,442,496 & 1459-KB-2020, IA (IB) No.1101-KB-2021 in CP (IB) No.361-KB-2017

> NCLT judgment dated 2022-06-28. Citation: TCN-2022-NCLT-02005. The case involves a batch of interlocutory applications filed by various Operational Creditors…

- **Court:** NCLT
- **Order date:** 28 Jun 2022
- **Citation:** TCN-2022-NCLT-02005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/electrosteel-steel-limited-ia-ib-no-73307310388399400401430431443441442496-1459-f4d315fb

## Summary

### Background

The case involves a batch of interlocutory applications filed by various Operational Creditors of Electrosteel Steel Limited, seeking consolidated reliefs such as leave to intervene, direction to pay the full and final amount as approved under the Resolution Plan, and condonation of delay in filing the applications. The Corporate Insolvency Resolution Process (CIRP) was initiated by State Bank of India (SBI) under section 7(1) of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the Corporate Debtor into CIRP on July 21, 2017, and appointed Mr. Dhaivat Anjaria as the Interim Resolution Professional (IRP), later the Resolution Professional (RP). The Resolution Professional made a public announcement to receive claims from stakeholders. The

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## Facts

1. State Bank of India (SBI) initiated Corporate Insolvency Resolution Process (CIRP) against Electrosteel Steel Limited under Section 7(1) of the Insolvency and Bankruptcy Code, 2016.
2. The Adjudicating Authority admitted Electrosteel Steel Limited into CIRP on July 21, 2017, and appointed Mr. Dhaivat Anjaria as the Interim Resolution Professional (IRP), later the Resolution Professional (RP).
3. The Resolution Professional made a public announcement to receive claims from stakeholders.
4. The total claim submitted by the Operational Creditors was ₹1,688.40 crore, out of which the Resolution Professional admitted ₹783.41 crore, rejecting the rest.
5. Vedanta Limited submitted a resolution plan, which was approved by the Committee of Creditors with 100% votes.
6. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditors are entitled …

**Ratio:** The law mandates that the Operational Creditors receive at least a minimum payment, the

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**Reasoning:** The Adjudicating Authority noted that the Operational Creditors, with total admitted

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**Interpretation:** The interpretation of the law is that while equal pay is not guaranteed,

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**Application:** In this case, the Operational Creditors were being paid NIL value. The

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Electronic…
- **Respondents:** Electrosteel…; Vedanta L…

## Timeline

- **2017-07-21 — Admission in…**: The Adjudicating Authority admitted the Corporate Debtor into CIRP and appointed Mr.…
- **2018-04-17 — Approval of Resolution…**: The Adjudicating Authority approved the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7(1) — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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