# In the matter of Mackeil Ispat & Forging Limited

> NCLT judgment dated 2023-09-14. Citation: TCN-2023-NCLT-01618. The case involves applications I.A. (IB) No. 463/KB/2022 and I.A. (IB) No. 1336/KB/2022 filed…

- **Court:** NCLT
- **Order date:** 14 Sept 2023
- **Citation:** TCN-2023-NCLT-01618
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mackeil-ispat-forging-limited-7282efda

## Summary

### Background

The case involves applications I.A. (IB) No. 463/KB/2022 and I.A. (IB) No. 1336/KB/2022 filed by Mackeil Ispat & Forging Limited (Corporate Debtor) and Samriddhi Metal Private Limited (Successful Resolution Applicant) against Damodar Valley Corporation (DVC). Mackeil Ispat & Forging Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on February 3, 2020, following an application by the State Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority approved the Resolution Plan of Samriddhi Metal Private Limited on September 21, 2021. The applicants challenge demands made by DVC for pre-CIRP dues, which they claim were settled under the approved Resolution Plan. They seek directions for DVC to

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## Facts

Mackeil Ispat & Forging Limited (Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) initiated by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP commenced on February 3, 2020. Samriddhi Metal Private Limited's Resolution Plan was approved on September 21, 2021. Damodar Valley Corporation (DVC), the electricity supplier, claimed Rs. 2.32 Crore. The Resolution Plan proposed paying DVC Rs. 4,64,300 as an operational creditor. DVC demanded Rs. 1,72,23,023 plus delayed payment surcharge, citing WBERC regulations, despite the approved Resolution Plan. DVC also demanded Rs. 55,99,527 towards delayed payment surcharge on the pre-CIRP claim. The Applicants paid amounts exceeding Rs. 4,64,300 under DVC's

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## Issues and analysis

### Issue 1: Whether this Adjudicating Authority has jurisdiction to decide the I.A.s filed by the Applicants …

**Ratio:** The Adjudicating Authority has jurisdiction under sub-section (5) of section 60 of the

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**Reasoning:** The court reasoned that the Applicant seeks relief related to insolvency resolution

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**Interpretation:** Section 60(5) of the IBC grants the Adjudicating Authority broad powers to

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**Application:** The court found that the I.A.s relate to the relief that was part of the

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Respondents:** Mackeil Ispat &…; Damodar Valley…

## Timeline

- **2020-02-03 — CIRP Commen…**: Mackeil Ispat & Forging Limited admitted into Corporate Insolvency Resolution Process…
- **2021-09-21 — Resolution Plan…**: Resolution Plan of Samriddhi Metal Private…

## 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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