# In the matter of SPS Steels Limited

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00700. The case involves an application (IA(IBC)/1035(KB)2022) filed under Section 54(2) of the…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00700
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sps-steels-limited-f4290e61

## Summary

### Background

The case involves an application (IA(IBC)/1035(KB)2022) filed under Section 54(2) of the Insolvency and Bankruptcy Code, 2016, read with regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016, by the Liquidator of SPS Steels Limited, the Corporate Debtor, seeking the dissolution of the corporate debtor. The Adjudicating Authority had previously initiated CIRP against the Corporate Debtor via an order dated 29/03/2019, appointing Mr. Nitesh Kumar More as the Interim Resolution Professional, who was later approved as the Resolution Professional by the Committee of Creditors. A liquidation order was passed on 06/01/2020, appointing the applicant as the Liquidator. The Adjudicating Authority had extended/excluded the liquidation period vide orders dated

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## Facts

Jai Balaji Industries Limited is the Operational Creditor. SPS Steels Limited (CIN: U27109WB2003PLC096537) is the Corporate Debtor. Mr. Nitesh Kumar More is the Liquidator of SPS Steels Limited. The Adjudicating Authority initiated CIRP against the Corporate Debtor on 29/03/2019 and appointed Mr. Nitesh Kumar More as the Interim Resolution Professional. The Committee of Creditors approved the appointment of IRP as RP on 14/05/2019. A liquidation order was passed on 06/01/2020, appointing the applicant as the Liquidator. The Liquidator opened a bank account being Account No. 031205006593 in the name of "SPS Steels Limited – In Liquidation". The Adjudicating Authority extended/excluded the liquidation period vide orders dated 18/02/2021, 03/11/2021 and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, SPS Steels Limited, should be dissolved under Section 54(2) of the …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The court reasoned that the affairs of the Corporate Debtor had been completely wound up,

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**Interpretation:** Section 54(2) provides the legal basis for dissolving a corporate entity once

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**Application:** The court applied Section 54(2) to the facts of the case, noting that the

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Respondents:** SPS Steels…

## Timeline

- **2019-03-29 — Initiation…**: The Adjudicating Authority ordered…
- **2019-03-29 — Appointment…**: Mr. Nitesh Kumar More was appointed as…

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