# In the matter of S.B. Ispat (india) Private Limited

> NCLT judgment dated 2024-07-11. Citation: TCN-2024-NCLT-01031. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against S.B.…

- **Court:** NCLT
- **Order date:** 11 Jul 2024
- **Citation:** TCN-2024-NCLT-01031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sb-ispat-india-private-limited-a4592947

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against S.B. Ispat (India) Private Limited. Due to the absence of a resolution plan, liquidation was ordered. The liquidator took steps to liquidate the assets, including opening a bank account, forming a Stakeholders Consultation Committee (SCC), and attempting to sell the company. An application was filed under Section 54(2) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking dissolution of the corporate debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against S.B. Ispat (India) Private Limited on 2022-01-07. As no resolution plan was received, liquidation was ordered on 2022-11-18. The liquidator opened a new bank account as per Regulation 41(1) of the Liquidation Regulations. The liquidator also filed an application under Sections 43, 45 & 66 of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the NCLT Rules, 2016 being application numbered IA(I.B.C)/484(KB)2022 before this Adjudicating Authority which deals with PUFE/Avoidance transactions for a sum of Rs. 9,39,21,113.00/-. The liquidation estate was formed, and a Stakeholders Consultation Committee (SCC) was constituted on 2023-01-17. The liquidation value was insignificant, and the

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54(2) of the …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016 states that the Adjudicating

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**Reasoning:** The court reasoned that the assets of the corporate debtor had been completely

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**Interpretation:** Section 54(2) of the IBC mandates the Adjudicating Authority to order the

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**Application:** In this case, the assets of S.B. Ispat (India) Private Limited had been

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** MAROTIA STEEL…
- **Respondents:** S.B. ISPAT…; S.B ISPAT INDIA…

## Timeline

- **2022-01-07 — CIRP Init…**: Corporate Insolvency Resolution Process was initiated against S.B. Ispat (India) Private…
- **2022-11-18 — Liquidation…**: Liquidation Order was passed as no…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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