# In the matter of Shree Sai Smelters India Ltd.

> NCLT judgment dated 2023-12-06. Citation: TCN-2023-NCLT-00391. The case involves multiple Interim Applications (IAs) filed under the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Dec 2023
- **Citation:** TCN-2023-NCLT-00391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-sai-smelters-india-ltd-6f4c03dd

## Summary

### Background

The case involves multiple Interim Applications (IAs) filed under the Insolvency and Bankruptcy Code (IBC) related to the Corporate Insolvency Resolution Process (CIRP) of three sister companies: Shree Sai Rolling Mills India Limited, Shree Sai Smelters India Limited, and Shree Sai Prakash Alloys Private Limited. The CIRP was initiated following orders from the Tribunal, which were later appealed before the NCLAT and the Supreme Court. The Supreme Court remanded the matters back to NCLAT for fresh adjudication. The Tribunal admitted the company petitions and initiated CIRP. The Resolution Professional (RP), Mr. Amit Pareek, was appointed, and a Committee of Creditors (CoC) was constituted. The RP invited expressions of interest (EOI) for resolution plans, but no EOIs

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for Shree Sai Rolling Mills India Limited, Shree Sai Smelters India Limited, and Shree Sai Prakash Alloys Private Limited. Mr. Amit Pareek was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The IRP made a public announcement, and the last date for submission of claims was fixed. The RP appointed valuers to determine the fair market and liquidation value of the Corporate Debtors. The RP invited expressions of interest (EOI) for resolution plans, but no EOIs were received despite multiple extensions. A resolution plan was submitted by a Prospective Resolution Applicant (PRA) on 22.05.2023. The CoC rejected the resolution plan in its 12th

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## Issues and analysis

### Issue 1: Whether the CoC can simultaneously pass resolutions for both approval of a resolution plan and …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) aims for resolution as the primary goal, with

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**Reasoning:** The Tribunal found it contradictory and indicative of a non-application of mind that the

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**Interpretation:** The IBC prioritizes resolution over liquidation, especially for MSMEs. The

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**Application:** In this case, the CoC's conflicting resolutions suggest a flawed

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## Parties

- **Judges:** H.V. Subb…; Satya Ranjan…
- **Appellants:** Rajiv Kumar…
- **Respondents:** Shree Sai…; Shree Sai…; +1 more

## Timeline

- **2019-08-23 — Tribunal…**: Tribunal initiated Corporate…
- **2020-06-18 — NCLAT Or…**: NCLAT allowed appeals…

## 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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