# In the matter of Rai Ispat Private Limited

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02638. The case pertains to IA(IBC)/650(CHE)/2023 filed in CP(IB)/272(CHE)/2021, concerning Rai Ispat…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rai-ispat-private-limited-08e76531

## Summary

### Background

The case pertains to IA(IBC)/650(CHE)/2023 filed in CP(IB)/272(CHE)/2021, concerning Rai Ispat Private Limited. The application was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated by the Adjudicating Authority. The applicant, Mr. Asir Raja Selvan, the Resolution Professional, sought an order for the liquidation of the Corporate Debtor, Rai Ispat Private Limited, and to be appointed as the Liquidator.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Rai Ispat Private Limited. Mr. Asir Raja Selvan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Claims were received from a Financial Creditor for Rs. 26,73,22,719.70 and from an Operational Creditor, Moorgate Industries, for Rs. 12,51,80,263.01. The Committee of Creditors (CoC) was constituted with the Financial Creditor having 100% voting rights. The 1st CoC meeting deferred the appointment of the applicant as the RP. Ms. Subramaniam Aneetha was later appointed as the RP. The Sole Financial Creditor in the CoC stated that there were no assets in the Corporate Debtor and requested the IRP to take action for processing liquidation. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Rai Ispat Private Limited, should …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The Adjudicating Authority considered the resolution passed by the Committee of Creditors

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**Interpretation:** The legal issue revolves around the interpretation of Section 33(2) of the IBC,

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**Application:** In this case, the CoC had resolved to liquidate the Corporate Debtor. The

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Mr.Asir Raja…
- **Respondents:** Rai Ispat Private…

## Timeline

- **2022-03-16 — Order Da…**: Order passed on 16.03.2022, appointing the Applicant as the Interim Resolution…
- **2022-04-16 — 1st CoC M…**: 1st meeting of the CoC was held on 16.04.2022, wherein CoC deferred to appoint 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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