# In the matter of Loha Ispaat Limited

> NCLT judgment dated 2023-09-15. Citation: TCN-2023-NCLT-01605. The case involves MA 1265/2018 in C.P.(IB)724/MB/2017 before the National Company Law Tribunal,…

- **Court:** NCLT
- **Order date:** 15 Sept 2023
- **Citation:** TCN-2023-NCLT-01605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/loha-ispaat-limited-5e486eb0

## Summary

### Background

The case involves MA 1265/2018 in C.P.(IB)724/MB/2017 before the National Company Law Tribunal, Mumbai Bench. The matter concerns Bright Steel Processors V/S Loha Ispat Limited. The Liquidator was directed to take instructions on proceeding further, but his counsel requested an adjournment due to the Liquidator's preoccupation with income tax matters. The Liquidator was also absent on the previous occasion. The Registry was directed to issue notice to the Liquidator of the Corporate Debtor, Mr. Anil Goel, and to serve a copy of the order to the Liquidator and the IBBI. The Liquidator is directed to show cause as to why contempt proceedings should not be initiated against him.

## Facts

The case involves MA 1265/2018 concerning Bright Steel Processors V/S Loha Ispat Limited. The Liquidator's counsel requested an adjournment due to the Liquidator's preoccupation with Income Tax matters. The Liquidator was absent on the previous occasion as well. The Registry was directed to issue notice to the Liquidator of the Corporate Debtor, Mr. Anil Goel. The Liquidator is directed to show cause as to why contempt proceedings should not be initiated against him for not remaining present and apprising the Bench about the present matter. The Registry is also directed to serve a copy of the present Order to the Insolvency and Bankruptcy Board of India (IBBI). The IBBI may look into the negligent conduct of the Liquidator. The case is stood over to 20.10.2023 for

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## Issues and analysis

### Issue 1: Whether the Liquidator should be held in contempt for failing to appear before the court despite …

**Ratio:** The court has the power to initiate contempt proceedings against individuals who fail to

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**Reasoning:** The court noted the Liquidator's repeated absence and the lack of a satisfactory

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**Interpretation:** The interpretation of the law allows the court to enforce its orders and ensure

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**Application:** The court directed the Liquidator to show cause as to why contempt proceedings

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## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Appellants:** Bright Steel…
- **Respondents:** Loha Ispat…

## Timeline

- **2023-09-15 — Order Sheet of the…**: Order sheet of the hearing on 15.09.2023. Counsel for the Liquidator requested an…
- **2023-10-20 — Next Hearin…**: Case stood over to 20.10.2023 for further consideration and hearing. No more adjournment…

## 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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