# In the matter of Surya Balaji Steels Private Limited IA(IBC)-578(CHE)-2022 in TCP-575-2017

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-01593. The case pertains to IA(IBC)/578(CHE)/2022 filed in TCP/575/2017 under Section 33(2)(d) of the…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-01593
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/surya-balaji-steels-private-limited-iaibc-578che-2022-in-tcp-575-2017-05f7042d

## Summary

### Background

The case pertains to IA(IBC)/578(CHE)/2022 filed in TCP/575/2017 under Section 33(2)(d) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The applicant, Mr. M.S. Viswanathan, the liquidator of Suryabalaji Steels Private Limited, sought permission from the NCLT to sell the land and building of the Corporate Debtor through private sale. The CIRP was initiated on 2017-10-05, and the applicant was appointed as IRP. Liquidation was ordered on 2018-05-29, and the applicant was appointed as Liquidator.

## Facts

Suryabalaji Steels Private Limited is undergoing liquidation. The CIRP was initiated on 2017-10-05. Mr. M.S. Viswanathan is the liquidator. The Corporate Debtor's factory was sealed by the State Bank of India under SARFAESI Act. The liquidator conducted seven e-auctions without success. The liquidator obtained valuations of the assets, including leasehold land and RCC buildings. The liquidator consulted with the State Bank of India regarding a private sale. A prospective purchaser initially offered Rs.67,93,133 but later improved the offer to Rs.72,00,000. The building is in weak condition due to a cyclone in 2019 and subsequent deterioration. The previous valuation was taken on 2020-12-14. The liquidator appointed two IBBI registered valuers on 2022-05-04 and

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## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to sell the land and building of the Corporate Debtor by …

**Ratio:** The ultimate object of the Insolvency and

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**Reasoning:** The Adjudicating Authority considered that the proposed purchaser had given a lower offer

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**Interpretation:** The court interprets the objective of the IBC to prioritize the maximization of

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**Application:** The court applied the principle of value maximization to the specific facts,

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Respondents:** Surya Balaji…; Suryabalaji Steel…
- **Advocates:** Mr.V.Mani…

## Timeline

- **2017-10-05 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated for Suryabalaji Steels…
- **2018-05-29 — Liquidation…**: Liquidation of the…

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