# In the matter of Mata Energy Limited

> NCLT judgment dated 2024-05-31. Citation: TCN-2024-NCLT-01264. The case pertains to IA (IBC) 05/2024 in CP (IB) No. 103/7/HDB/2020 filed under Section 33(2)…

- **Court:** NCLT
- **Order date:** 31 May 2024
- **Citation:** TCN-2024-NCLT-01264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mata-energy-limited-95a52254

## Summary

### Background

The case pertains to IA (IBC) 05/2024 in CP (IB) No. 103/7/HDB/2020 filed under Section 33(2) read with Section 34 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Mata Energy Limited vide order dated 04.03.2022 based on an application by State Bank of India under Section 7 of IBC 2016. An Interim Resolution Professional (IRP), Mr. B Naga Bhushan, was appointed. The Committee of Creditors (COC) approved a Resolution Plan submitted by the Consortium of M/s Varma Steels Private Limited and Mr AVP Varma with 100% voting. The Tribunal approved the Resolution Plan on 27.02.2023. The Successful Resolution Applicant (SRA) made an upfront payment of Rs 1.82 Crores. However, the SRA failed to pay the remaining

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## Facts

The State Bank of India initiated CIRP against Mata Energy Ltd under Section 7 of IBC 2016, leading to the appointment of Mr. B Naga Bhushan as the Interim Resolution Professional. The COC approved a resolution plan by Varma Steels Private Limited and Mr. AVP Varma with 100% voting. The Tribunal approved the resolution plan on 27.02.2023. The SRA paid Rs 1.82 Crores upfront. The SRA failed to pay the remaining Rs 2.50 Crores by the due date of 29.08.2023. The Monitoring Committee, in its 8th meeting on 05.03.2024, resolved to seek liquidation and cancel the resolution plan. The Resolution Professional filed an application for liquidation. The approved plan was under implementation under the supervision of the Monitoring Committee. The 8th meeting of the Monitoring

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## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, Mata Energy Limited, is justified under Section …

**Ratio:** Section 33(2) of the IBC allows for liquidation when the resolution professional

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**Reasoning:** The Tribunal noted that the SRA failed to pay the residual amount of Rs 2.50 Crores by

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when a resolution plan fails

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**Application:** In this case, the SRA's failure to pay the full amount and the COC's resolution

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** Mata Ener…

## Timeline

- **2022-03-04 — CIRP Init…**: CIRP initiated against Mata Energy Ltd based…
- **2022-03-09 — Order Rec…**: Copy of the CIRP order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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