# In the matter of SSB Structural & Galvanising Pvt. Ltd.

> NCLT judgment dated 2024-02-05. Citation: TCN-2024-NCLT-02778. The case pertains to a contempt application filed by the Interim Resolution Professional (IRP)…

- **Court:** NCLT
- **Order date:** 5 Feb 2024
- **Citation:** TCN-2024-NCLT-02778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ssb-structural-galvanising-pvt-ltd-00abaf63

## Summary

### Background

The case pertains to a contempt application filed by the Interim Resolution Professional (IRP) of SSB Structural and Galvanising Private Limited against Mr. Basanthlal Shah, the sole member of the Committee of Creditors (CoC), for wilful disobedience of an order dated 13.12.2022 passed in IA 325 of 2022 in CP(IB) No. 720/9/HDB/2019. The order directed the respondent to pay Rs. 14,40,000/- and Rs. 3,60,000/- towards expenses incurred by the applicant. The Corporate Insolvency Resolution Process (CIRP) was initiated on 28.07.2021, and the IRP was appointed on 27.08.2021. The IRP had incurred expenses which were placed before the CoC for ratification, but the respondent dissented. The applicant then filed IA 325 of 2022, which was allowed, directing the CoC to pay the

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## Facts

The Interim Resolution Professional (IRP) of SSB Structural and Galvanising Private Limited filed a contempt application against Mr. Basanthlal Shah, the sole member of the Committee of Creditors (CoC). The CIRP of the Corporate Debtor was initiated on 28.07.2021, and the applicant was appointed as IRP on 27.08.2021. The IRP incurred expenses of Rs.3,60,000/- from 01.10.2021 to 24.10.2021, which was placed before the CoC on 30.10.2021 for ratification. The respondent dissented and did not approve the expenses. The applicant filed IA 325 of 2022 claiming Rs.3,60,000/- and further Rs.14,40,000 incurred from 01.10.2021. IA 325 of 2022 was allowed on 13.12.2022, directing the CoC to pay the amount. The applicant informed the respondent about the order on 05.01.2023 and

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## Issues and analysis

### Issue 1: Whether the respondent's failure to comply with the order dated 13.12.2022 constitutes civil …

**Ratio:** Civil contempt means wilful disobedience to any judgment, decree, direction, order, writ,

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**Reasoning:** The court relied on several Supreme Court decisions, including Anil Ratan Sarkar &

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**Interpretation:** The interpretation of Section 2(b) requires establishing that the contemnor had

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**Application:** In this case, the respondent was informed of the order dated 13.12.2022,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Theegala Venkatesw…
- **Respondents:** SSB Structural &…; Mr.Basanthl…
- **Advocates:** Mr.Y.Suryan…; Mr.N.N.…

## Timeline

- **2021-07-28 — CIRP Init…**: The Corporate Insolvency Resolution Process…
- **2021-08-27 — IRP Appoi…**: The applicant was appointed as the…

## 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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