# In the matter of Kharewali Steel Private Limited I.A. 1298 OF 2023 in C.P.(IB) No. 3093-MB-2019

> NCLT judgment dated 2023-04-19. Citation: TCN-2023-NCLT-03725. The application I.A. No. 1298/2023 was filed by the Resolution Professional, Mr. Mahesh Sureka,…

- **Court:** NCLT
- **Order date:** 19 Apr 2023
- **Citation:** TCN-2023-NCLT-03725
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kharewali-steel-private-limited-ia-1298-of-2023-in-cpib-no-3093-mb-2019-9c251dd1

## Summary

### Background

The application I.A. No. 1298/2023 was filed by the Resolution Professional, Mr. Mahesh Sureka, seeking liquidation of Kharewali Steel Private Limited (the Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor after Union Bank of India, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, which was admitted on 2022-12-13. The Resolution Professional was appointed as the Interim Resolution Professional of the Corporate Debtor by the Tribunal.

## Facts

The Resolution Professional, Mr. Mahesh Sureka, filed an application seeking liquidation of Kharewali Steel Private Limited. The CIRP was initiated following a Section 7 petition by Union Bank of India, the Financial Creditor, which was admitted on 2022-12-13. The Resolution Professional was appointed as the Interim Resolution Professional. After the publication of Form-A, only one claim was received from Union Bank of India. The Resolution Professional visited the Corporate Debtor's registered office, which had already been sold, and the site at Palghar District, where no plant and machinery were available. The Resolution Professional requested cooperation from the Suspended Board Members but received no information. The CoC, consisting solely of Union Bank of India,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Kharewali Steel Private Limited, should be liquidated under Section …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The CoC, consisting of the sole member Union Bank of India, determined that there were no

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** In this case, the CoC's decision, coupled with the absence of any feasible

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Mahesh S…
- **Respondents:** Kharewali Steel…; Union Bank of…
- **Advocates:** Yahya Bata…

## Timeline

- **2019-01-01 — Company Petiti…**: C.P.(IB) No. 3093/MB/201…
- **2019-02-01 — Sale of Registered…**: Registered Office of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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