# In the matter of Nami Steel Private Limited

> NCLT judgment dated 2024-04-23. Citation: TCN-2024-NCLT-01639. The case pertains to an application filed under Section 33 and Section 34(1) of the Insolvency…

- **Court:** NCLT
- **Order date:** 23 Apr 2024
- **Citation:** TCN-2024-NCLT-01639
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nami-steel-private-limited-6cf808af

## Summary

### Background

The case pertains to an application filed under Section 33 and Section 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the corporate debtor, Nami Steel Private Limited. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 2022-08-16, following an application filed by Saraswat Cooperative Bank Limited, the Financial Creditor. An Interim Resolution Professional (IRP) was appointed, who was subsequently appointed as the Resolution Professional (RP). Public announcement was made, and the Committee of Creditors (CoC) was constituted, with Saraswat Cooperative Bank Limited holding 100% voting share. Various CoC meetings were conducted, and the CIRP period was extended. An application for avoidance

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## Facts

Nami Steel Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Saraswat Cooperative Bank Limited, the Financial Creditor, on 2022-08-16. Udayraj Patwardhan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Despite extending the CIRP period and receiving multiple resolution plans, the Committee of Creditors (CoC), consisting solely of Saraswat Cooperative Bank Limited, rejected all plans. Valuation reports of the corporate debtor's assets showed significant discrepancies, necessitating the appointment of a third valuer. The CoC ultimately resolved to liquidate the corporate debtor in accordance with Section 33(2) and Section 34 of the Insolvency and Bankruptcy Code (IBC). The RP

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Nami Steel Private Limited, under …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of a

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**Reasoning:** The CoC, consisting solely of Saraswat Cooperative Bank Limited, rejected all resolution

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if the CIRP fails to

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**Application:** Since no resolution plan was approved, the Adjudicating Authority applied

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Udayraj Pat…
- **Respondents:** Nami Steel…

## Timeline

- **2022-08-16 — Admission in…**: Nami Steel Private Limited admitted into Corporate Insolvency Resolution Process (CIRP)…
- **2023-07-18 — IBBI Cir…**: IBBI issued Circular No.Liq-12011/214/2023-IBBI/840 recommending appointment of an IP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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