# In the matter of Orissa Alloy Steel Private Limited vs. S M Steels and Power Limited & Ors.

> NCLT judgment dated 2025-11-06. Citation: TCN-2025-NCLT-01684. The case involves two appeals against an order passed by the Adjudicating Authority, National…

- **Court:** NCLT
- **Order date:** 6 Nov 2025
- **Citation:** TCN-2025-NCLT-01684
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/orissa-alloy-steel-private-limited-vs-s-m-steels-and-power-limited-ors-0b3200e7

## Summary

### Background

The case involves two appeals against an order passed by the Adjudicating Authority, National Company Law Tribunal, Kolkata Bench, regarding the liquidation of a Corporate Debtor. The Adjudicating Authority disallowed an application filed by the Liquidator and directed the Liquidator to issue a fresh Swiss Challenge Notice for the private sale of the assets of the Corporate Debtor.

## Facts

Corporate Debtor was admitted into CIRP on 19.03.2020.

Liquidation was directed on 08.10.2021, and a Liquidator was appointed.

The Stakeholders' Consultation Committee (SCC) was constituted with ARCIL holding 60.65% of the voting share.

Nine rounds of auction were conducted unsuccessfully between 31.12.2021 and 15.01.2024.

OASPL submitted an offer to acquire the business of Corporate Debtor as a going concern through private sale for Rs. 250 crores on 19.02.2024.

The SCC members voted in favor of OASPL's bid with 80.33% majority.

The Liquidator issued a public notice announcing a Swiss Challenge auction for the sale of Corporate Debtor on 22.02.2024.

The last date for submission of eligibility documents was 27.02.2024.

…

## Issues and analysis

### Issue 1: Whether the Liquidator was required to obtain “prior permission” of the Adjudicating Authority for …

**Ratio:** Regulation 33(2)(d) of the LPR mandates prior permission of the Adjudicating Authority

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**Reasoning:** The word “prior” removes ambiguity, meaning permission cannot be post facto. The LPR has

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**Interpretation:** The Liquidator must obtain permission before setting terms and conditions for

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**Application:** The Liquidator filed IA 447 of 2024 after preliminary steps were taken,

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Respondents:** Corporate Power…; S M Steels and…; +3 more
- **Other parties:** Patwari family…
- **Advocates:** Abhijeet…; Vaibhav G…; +22 more

## Timeline

- **2020-03-19 — CIRP Admi…**: Corporate Debtor admitted into Corporate…
- **2021-10-08 — Liquidation…**: Adjudicating Authority directed liquidation of Corporate Debtor and appointed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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