# In the matter of Enaar Steel & Alloy Pvt. Ltd. Inv.P.No.23 of 2023 in IA.NO. 542 of 2023 in CP (IB) No. 39-10-HDB-2022

> NCLT judgment dated 2023-06-27. Citation: TCN-2023-NCLT-02780. The case involves an application filed by Gurupreeth Galvanizing Private Limited under Section…

- **Court:** NCLT
- **Order date:** 27 Jun 2023
- **Citation:** TCN-2023-NCLT-02780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/enaar-steel-alloy-pvt-ltd-invpno23-of-2023-in-iano-542-of-2023-in-cp-ib-no-39-10-58ca08ec

## Summary

### Background

The case involves an application filed by Gurupreeth Galvanizing Private Limited under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking to participate in the Corporate Insolvency Resolution Process (CIRP) of Ennar Steel & Alloy Private Limited. The applicant challenges the Committee of Creditors' (CoC) decision to reject all resolution plans and seek an extension of the CIRP. The Corporate Insolvency Resolution Process was initiated due to the corporate debtor's inability to pay arrears to the Telangana State Power Distribution Company Limited. The applicant expressed interest in placing a resolution plan, but the CoC rejected it, leading to the application for intervention.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Ennar Steel & Alloy Private Limited due to its inability to pay arrears to the Telangana State Power Distribution Company Limited. Gurupreeth Galvanizing Private Limited expressed interest in submitting a resolution plan. The Resolution Professional (RP) carried out paper publications for Expression of Interest (EOI). Seven prospective resolution applicants submitted proposals. The Committee of Creditors (CoC) rejected all resolution plans without opening them and directed the RP to seek an extension of the CIRP. Gurupreeth Galvanizing Private Limited filed an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking to participate in the proceedings. The applicant

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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 commercial wisdom of the Committee of Creditors in voting or rejecting resolution

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**Reasoning:** The Tribunal reasoned that the Insolvency & Bankruptcy Code (IBC) leaves the approval

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**Interpretation:** The interpretation of Section 31 of the IBC emphasizes the adjudicating

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**Application:** The Tribunal applied the principle that the commercial wisdom of the CoC is

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Gurupreeth…
- **Respondents:** Ennar Steel &…; Artham Someswara…

## Timeline

- **2022-07-01 — Petition Ad…**: Petition admitted for CIRP, Mr.Pavan Kankani…
- **2022-12-09 — Prospective Resolution…**: List of Prospective…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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