# In the matter of Steelera Engineers Private Limited

> NCLT judgment dated 2024-08-21. Citation: TCN-2024-NCLT-00768. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Steelera Engineers…

- **Court:** NCLT
- **Order date:** 21 Aug 2024
- **Citation:** TCN-2024-NCLT-00768
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/steelera-engineers-private-limited-990d4508

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Steelera Engineers Private Limited, initiated based on an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by an operational creditor, Rebartech Solutions Private Limited. The CIRP commenced on November 16, 2022. Neha Chhawchharia was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and a resolution plan was submitted by Midpoint Commodeal Private Limited, which is also a financial creditor with a significant voting share (99.87%). The resolution plan underwent several revisions and addenda. The RP filed an application (IA/844/AHM/2023) seeking approval of the resolution plan.

## Facts

Steelera Engineers Private Limited underwent CIRP initiated by Rebartech Solutions Private Limited under Section 9 of IBC. Neha Chhawchharia was appointed as the RP. Midpoint Commodeal Private Limited, a financial creditor with 99.87% voting share in the CoC, submitted a resolution plan. The plan proposed a settlement amount of Rs. 6,25,00,000 against admitted claims of Rs. 6,28,89,923, with the settled amount being shown as a secured loan at 7.5% interest. The plan's validity was limited to October 19, 2023, without a clear extension mechanism. The tribunal noted discrepancies in valuation reports and the absence of financial projections demonstrating the debtor's ability to service its debt. The CoC meetings were primarily attended by Midpoint Commodeal. The RP filed

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## Issues and analysis

### Issue 1: Whether the submitted resolution plan meets the requirements of Section 31 of the Insolvency and …

**Ratio:** Section 31 of the IBC mandates that a resolution plan must be compliant with the

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**Reasoning:** The tribunal found that the resolution plan did not adequately address the cause of

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**Interpretation:** Section 31 requires a resolution plan to be comprehensive and address all

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**Application:** In this case, the resolution plan failed to meet the requirements of Section 31

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Neha Chhawc…
- **Respondents:** Steelera Engineers…

## Timeline

- **2020-06-03 — Date of filing Section…**: Rebartech Solutions Private Limited filed an application under Section 9 of the IBC to…
- **2022-11-16 — Commencement…**: The CIRP of Steelera Engineers…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(6) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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