# In the matter of Reform Ferro Cast Limited

> NCLT judgment dated 2024-09-03. Citation: TCN-2024-NCLT-00684. The case involves an application (IA(IBC)/1274(KB)2024) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 3 Sept 2024
- **Citation:** TCN-2024-NCLT-00684
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/reform-ferro-cast-limited-01b5e4d8

## Summary

### Background

The case involves an application (IA(IBC)/1274(KB)2024) filed by the Resolution Professional (RP) of Reform Ferro Cast Limited, the Corporate Debtor, under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016. The RP sought permission to withdraw a liquidation application (IA 1803/KB/2023) and exclude time from the CIRP timeline to allow for the consideration of a new resolution plan. The Corporate Insolvency Resolution Process (CIRP) had commenced on 2022-11-21. The initial CIRP period was extended, and a resolution plan was initially rejected by the Committee of Creditors (CoC), leading to the filing of a liquidation application. Subsequently, a new prospective resolution applicant (SSM Ispat Ltd.) expressed interest,

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Reform Ferro Cast Limited commenced on 2022-11-21. The RP published Form G on 2023-01-16, inviting Expressions of Interest (EOI). Twenty parties submitted EOI documents by 2023-02-05. The RP issued the RFRP on 2023-02-15. The CoC agreed to conduct a land survey of the factory land on 2023-03-13 and extended the deadline for submitting resolution plans by four weeks. The land survey report was submitted to the RP on 2023-04-04. The revised deadline for submitting resolution plans was 2023-04-14, and four plans were received. The H1 bidder was declared on 2023-05-15. The initial 180-day CIRP period was extended by 90 days via an order dated 2023-05-17. The updated resolution plan of the H1 bidder was received by the

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## Issues and analysis

### Issue 1: Whether the CoC can withdraw a liquidation application filed before the Adjudicating Authority in …

**Ratio:** The CoC can withdraw a liquidation application if a viable resolution plan becomes

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**Reasoning:** The Adjudicating Authority relied on the decision of the NCLAT in Anil Kumar, Suspended

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**Interpretation:** The interpretation is that the IBC prioritizes resolution over liquidation, and

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**Application:** In this case, the CoC decided to withdraw the liquidation application after

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** REFORM FERRO CAST…
- **Advocates:** Mr.Joy…; Ms.Urmila…

## Timeline

- **2022-11-21 — CIRP Commen…**: The Corporate Insolvency…
- **2023-01-16 — Form G Pub…**: Form G was published, inviting…

## 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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