# Rahuraj Steel Traders Private Limited vs. Siddhbali Steels & Strips Private Limited

> NCLT judgment dated 2026-05-12. Citation: TCN-2026-NCLT-00512. M/s. Rahuraj Steel Traders Private Limited, a financial creditor, initiated Corporate…

- **Court:** NCLT
- **Order date:** 12 May 2026
- **Citation:** TCN-2026-NCLT-00512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/rahuraj-steel-traders-private-limited-vs-siddhbali-steels-strips-private-limited-vnawa

## Summary

### Background

M/s. Rahuraj Steel Traders Private Limited, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Siddhbali Steel and Strips Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Bimal Ashok Desai was appointed as the Interim Resolution Professional (IRP), and a Committee of Creditors (CoC) was constituted with the financial creditor holding a 100% voting share. However, the financial creditor failed to deposit the CIRP costs as directed by the Tribunal, leading to a standstill in the resolution process. Consequently, the 180-day CIRP period expired without any resolution plan being received or an application for extension being filed.

## Facts

Company Petition No. 372 of 2021 was filed by M/s. Rahuraj Steel Traders Private Limited, a Financial Creditor, under Section 7 of the IBC to initiate CIRP against M/s Siddhbali Steel and Strips Private Limited.

CIRP against the Corporate Debtor was initiated on 27.02.2023.

Mr. Bimal Ashok Desai was appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor.

The IRP made a public announcement of the CIRP initiation on 03.03.2023, inviting claims from creditors with the last date of accepting claims till 13.03.2023.

A Committee of Creditors (CoC) was constituted in accordance with Section 21 of the Code.

The CoC comprised the sole financial creditor, M/s. Rahuraj Steel Traders Private Limited, with a 100% voting share.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Siddhbali Steel and Strips Private Limited, should be ordered for …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The Committee of Creditors (CoC) unanimously resolved to liquidate the Corporate Debtor,

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**Interpretation:** The Tribunal interpreted Section 33(2) to mean that once the CoC has made a

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**Application:** Given the CoC's unanimous decision to liquidate the Corporate Debtor, M/s

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## Parties

- **Judges:** NILESH S…; Charanjeet Singh…
- **Appellants:** Bimal Ashok…; M/s. Rahuraj…
- **Respondents:** M/s Siddhbali…
- **Other parties:** Nandish Sunilbhai…
- **Advocates:** Rudresh J…

## Timeline

- **2021 — Company Petiti…**: Company Petition No. 372 of 2021 was…
- **2023-02-27 — CIRP Initiation and…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate…

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