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

> NCLT judgment dated 2024-07-05. Citation: TCN-2024-NCLT-01065. The case pertains to an application under Section 54(2) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Jul 2024
- **Citation:** TCN-2024-NCLT-01065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sb-ispat-india-private-limited-d000b83d

## Summary

### Background

The case pertains to an application 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 the dissolution of S.B. ISPAT (INDIA) PRIVATE LIMITED, a Corporate Debtor undergoing liquidation. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 07.01.2022. During the CIRP, no resolution plan was received, leading to the initiation of liquidation proceedings. The liquidator took steps to realize the assets of the Corporate Debtor, including opening a new bank account, filing an application for avoidance transactions, forming a Stakeholders Consultation Committee (SCC), and attempting to sell the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against S.B. ISPAT (INDIA) PRIVATE LIMITED on 07.01.2022. As no resolution plan was received during the CIRP, liquidation proceedings were initiated. The liquidator opened a new bank account, filed an application for avoidance transactions amounting to Rs. 9,39,21,113.00/-, and formed a Stakeholders Consultation Committee (SCC) on 17.01.2023. The liquidation value was insignificant, and efforts to sell the company as a going concern were unsuccessful. The SCC recommended a private sale, and the assets were sold to M/s. Trendy Bazar on 17.07.2023. The liquidator attempted to recover dues from the debtors of the Corporate Debtor, but no proceedings could be initiated under IBC due to the small amounts

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, S.B. ISPAT (INDIA) PRIVATE LIMITED, should be dissolved under Section …

**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 liquidator had complied with the provisions of the Code and

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**Interpretation:** Section 54(2) of the IBC provides the legal basis for the dissolution of a

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**Application:** In this case, the liquidator had filed an application for the dissolution of

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** S.B. ISPAT…

## Timeline

- **2022-01-07 — Initiation…**: Corporate Insolvency Resolution Process was initiated against S.B. ISPAT (INDIA) Private…
- **2022-11-18 — Liquidation…**: Liquidation Order was…

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