# In the matter of RICHA INDUSTRIES LIMITED

> NCLT judgment dated 2025-06-11. Citation: TCN-2025-NCLT-00727. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Richa…

- **Court:** NCLT
- **Order date:** 11 Jun 2025
- **Citation:** TCN-2025-NCLT-00727
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/richa-industries-limited-01edda9c

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Richa Industries Ltd. based on an application by Tata Blue Scope Steel Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP was admitted by the NCLT, Chandigarh Bench on 2018-12-18, and Mr. Arvind Kumar was appointed as the Interim Resolution Professional (IRP). Subsequently, Indian Overseas Bank and Union Bank of India (formerly Corporation Bank), being financial creditors, filed claims. Disputes arose regarding the constitution of the Committee of Creditors (CoC), leading to various applications and challenges. The applicants alleged irregularities in the CoC's composition, actions of the Resolution Professional (RP), and decisions made during the CIRP. The RP

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## Facts

The CIRP of Richa Industries Ltd. was initiated based on an application by Tata Blue Scope Steel Ltd. The NCLT admitted the application on 2018-12-18, and appointed Mr. Arvind Kumar as the IRP. Indian Overseas Bank and Union Bank of India (formerly Corporation Bank) are financial creditors with claims of ₹171.61 Crores and ₹59 Crores, respectively. The applicants were excluded from the initial CoC meeting on 2019-01-17, which allegedly included operational creditors and related parties in violation of Regulation 16 of the CIRP Regulations. The applicants filed CA No. 233 of 2019 challenging the CoC's constitution. On 2019-08-26, the Tribunal directed that any action taken would be subject to the outcome of CA No. 233 of 2019. On 2019-11-05, the Tribunal found that many

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## Issues and analysis

### Issue 1: Whether the application for liquidation of …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass a liquidation

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**Reasoning:** The Tribunal noted that the Resolution of Liquidation had been approved by the requisite

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** In this case, the CoC approved the liquidation with the required majority, and

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## Parties

- **Judges:** HON’BLE SH.…; Sh. Shishir…
- **Appellants:** Tata Blue Scope…
- **Respondents:** Richa Industries…
- **Advocates:** Nitin Kant…; V.K Sac…; +2 more

## Timeline

- **2018-12-18 — CIRP Init…**: CIRP of Richa Industries Ltd. initiated,…
- **2018-12-21 — Appointment…**: Mr. Arvind Kumar appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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