# In the matter of Impex Metal & Ferro Alloys Limited

> NCLT judgment dated 2024-04-16. Citation: TCN-2024-NCLT-01722. The case involves applications under Section 60(5) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 16 Apr 2024
- **Citation:** TCN-2024-NCLT-01722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/impex-metal-ferro-alloys-limited-7348f0c8

## Summary

### Background

The case involves applications under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, concerning Impex Metal & Ferro Alloys Ltd., which underwent Corporate Insolvency Resolution Process (CIRP) and was subsequently directed to be sold as a going concern under liquidation to Maithon Alloys Limited. The applications pertain to the extinguishment of claims and liabilities against the applicant company, particularly concerning dues related to water and electricity supply from Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and Transmission Corporation of Andhra Pradesh Limited, prior to the acquisition date of the company by the auction purchaser.

## Facts

1. Impex Metal & Ferro Alloys Ltd. was admitted into Corporate Insolvency Resolution Process (CIRP) on 2018-03-09 and later directed to be sold as a going concern under liquidation to Maithon Alloys Limited on 2019-02-12.
2. Maithon Alloys Limited acquired Impex Metal & Ferro Alloys Ltd. on 2021-09-16 through an auction purchase.
3. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) claimed outstanding water tax dues from Impex Metal & Ferro Alloys Ltd., even after the acquisition by Maithon Alloys Limited.
4. Impex Metal (under Maithon Alloys) made payments under protest to APIIC to avoid disconnection of water supply and ensure the plant's continued operation.
5. Impex Metal applied for an increased water supply from 100 KL per day to 300 KL per day

…

## Issues and analysis

### Issue 1: Whether the successful auction purchaser, Maithon Alloys Limited, is liable for the pre-CIRP dues …

**Ratio:** The ratio is that a successful auction purchaser cannot be saddled with the penalties

…

**Reasoning:** The court relies on the principle established in previous judgments, including those of

…

**Interpretation:** The interpretation is that the Insolvency and Bankruptcy Code intends to

…

**Application:** The court applies this ratio to the specific facts by holding that Maithon

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Impex Metal and…; The Zonal…
- **Advocates:** Zeeshan…; Tanvi Luha…; +10 more

## Timeline

- **2018-03-09 — CIRP Admi…**: Impex Metal & Ferro Alloys Ltd. was admitted under Corporate Insolvency Resolution…
- **2019-02-12 — Liquidation…**: The company was directed to be sold as a going concern under liquidation to Maithon…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/impex-metal-ferro-alloys-limited-7348f0c8