# In the matter of Enaar Steel & Alloy Private Limited

> NCLT judgment dated 2023-06-27. Citation: TCN-2023-NCLT-02785. The case involves an application (IA 542/2022) filed by the Resolution Professional under…

- **Court:** NCLT
- **Order date:** 27 Jun 2023
- **Citation:** TCN-2023-NCLT-02785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/enaar-steel-alloy-private-limited-bf6ddeab

## Summary

### Background

The case involves an application (IA 542/2022) filed by the Resolution Professional under Section 30(6) & 31 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking approval of the resolution plan submitted by Vinayak Steels Limited for the corporate debtor, Enaar Steel and Alloy Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against Enaar Steel and Alloy Private Limited on 01.07.2022. Mr. Pavan Kankani was appointed as Interim Resolution Professional (IRP), later replaced by Mr. A. Someshwara Rao. The Committee of Creditors (CoC) was formed with Southern Power Distribution Company of Telangana Limited (TSSPDCL) as the sole operational creditor. The Resolution Professional carried out Form-G publication inviting Expression of

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## Facts

Enaar Steel and Alloy Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 01.07.2022. Pavan Kankani was initially appointed as Interim Resolution Professional (IRP), later replaced by A. Someshwara Rao. Southern Power Distribution Company of Telangana Limited (TSSPDCL) was the sole operational creditor, forming the Committee of Creditors (CoC). The Resolution Professional (RP) issued Form-G, inviting Expression of Interest (EOI) from Prospective Resolution Applicants (PRAs). Four resolution plans were received initially, but all were rejected by the CoC. A second Form-G was issued, leading to Vinayak Steels Limited submitting a resolution plan. The CoC approved Vinayak Steels Limited's plan with 100% voting share on 10/03/2023. The RP

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## Issues and analysis

### Issue 1: Whether an unsuccessful resolution Applicant is entitled to participate in the proceedings and be …

**Ratio:** The IBC leaves the approval of the resolution plan to the wisdom of the members of the

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**Reasoning:** The court reasoned that the IBC framework grants significant autonomy to the CoC in the

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**Interpretation:** This interpretation reinforces the CoC's primary role in evaluating and

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**Application:** The court applied this principle by dismissing the intervention petition filed

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## Parties

- **Judges:** Venkata Ramakrishn…; Shri. Chara…
- **Appellants:** M/s.Gurupreeth…
- **Respondents:** Enaar Steel and…; Artham Someswara…

## Timeline

- **2022-07-01 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Enaar Steel and Alloy…
- **2022-07-07 — Public Annou…**: Public announcement issued in 'Financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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