# In the matter of Steel SBQ Limited IA(IBC)-125-(CHE)-2023 in CP(IB)-665-(CHE)-2017]

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01838. The case involves Liberty Steel SBQ Limited, the applicant, seeking restoration of electricity…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01838
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/steel-sbq-limited-iaibc-125-che-2023-in-cpib-665-che-2017-9c0a4330

## Summary

### Background

The case involves Liberty Steel SBQ Limited, the applicant, seeking restoration of electricity supply from Southern Power Distribution Company of Andhra Pradesh Limited and other respondents. Liberty Steel SBQ Limited acquired SBQ Steel Limited (the Corporate Debtor) through an e-auction during the Corporate Insolvency Resolution Process (CIRP). The applicant contends that as an auction purchaser, it is not liable for the pre- and post-CIRP dues of the Corporate Debtor, especially since the Corporate Debtor has been dissolved. The electricity connection to the Corporate Debtor was disconnected in January 2018 due to pending dues. The applicant argues that the respondents' claims should have been addressed during the liquidation process under the Insolvency and

…

## Facts

Liberty Steel SBQ Limited (the Applicant) acquired SBQ Steel Limited (the Corporate Debtor) through an e-auction during the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was admitted into CIRP on 2017-12-29, and a liquidation order was issued on 2019-02-15. The Applicant was declared the successful bidder on 2020-08-08, and Liberty Steel SBQ Limited was incorporated on 2020-09-16 as a special purpose vehicle. The Adjudicating Authority approved the auction on 2020-12-07, and a sale certificate was issued on 2020-12-10. The Corporate Debtor was dissolved on 2022-02-11. The Southern Power Distribution Company of Andhra Pradesh Limited (1st Respondent) disconnected the electricity supply to the Corporate Debtor in January 2018 due to pending dues.

…

## Issues and analysis

### Issue 1: Whether the Applicant, as a successful auction purchaser of the Corporate Debtor, is liable for the …

**Ratio:** The ratio is that the IBC provides a detailed procedure for dealing with the claims of

…

**Reasoning:** The court reasoned that the Appellant's claim to realize pre-CIRP dues from the

…

**Interpretation:** The interpretation is that the IBC framework takes precedence over any other

…

**Application:** The court applied this reasoning to the specific facts by stating that the

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Liberty Steel SBQ…
- **Respondents:** SBQ Steel L…; The Chairman &…

## Timeline

- **2017-12-29 — Admission in…**: Admission order admitting the Corporate Debtor into Corporate Insolvency Resolution…
- **2018-01-01 — Electricity Disconnectio…**: Electricity connection to the Corporate…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/steel-sbq-limited-iaibc-125-che-2023-in-cpib-665-che-2017-9c0a4330