# In the matter of Rathi Steel and Power Ltd. Vs. Reserve Bank of ndia & Ors. Writ Petition(Civil) No. 204-2019

> SC judgment dated 2019-08-06. Citation: TCN-2019-SC-00042. The case involves a writ petition before the Supreme Court of India concerning insolvency…

- **Court:** SC
- **Order date:** 6 Aug 2019
- **Citation:** TCN-2019-SC-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/rathi-steel-and-power-ltd-vs-reserve-bank-of-ndia-ors-writ-petition-c4f18786

## Summary

### Background

The case involves a writ petition before the Supreme Court of India concerning insolvency proceedings initiated against M/S Rathi Steel and Power Ltd. The National Company Law Tribunal (NCLT) had already heard the concerned parties and reserved judgment on February 12, 2019. The present issue revolves around whether the insolvency proceedings were initiated pursuant to the Reserve Bank of India's circular dated February 12, 2018, or independently of it.

## Facts

M/S Rathi Steel and Power Ltd. is the petitioner in a writ petition before the Supreme Court. The Reserve Bank of India (RBI) is the respondent. The National Company Law Tribunal (NCLT) had previously heard the case and reserved judgment on February 12, 2019. The central issue is whether the insolvency proceedings against M/S Rathi Steel and Power Ltd. were initiated based on the RBI's circular dated February 12, 2018, or independently. The Supreme Court directed the NCLT to reopen the proceedings to address this specific point.

## Issues and analysis

### Issue 1: Whether the insolvency proceedings against M/S Rathi Steel and Power Ltd. were initiated pursuant …

**Ratio:** The legal principle revolves around the proper initiation of insolvency proceedings and

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**Reasoning:** The Court's reasoning is that the origin of the insolvency proceedings is a critical

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**Interpretation:** The interpretation centers on understanding the scope and applicability of the

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**Application:** The ratio and reasoning are applied to the specific facts by directing the NCLT

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## Parties

- **Judges:** ROHINTON FALI…; SURYA…
- **Respondents:** M/S RATHI STEEL…; Reserve Bank of…

## Timeline

- **2019-02-12 — NCLT Reserved…**: The National Company Law Tribunal (NCLT) had already heard all the concerned parties and…
- **2019-08-06 — Supreme Court…**: The Supreme Court heard the writ petition and…

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