In the matter of SAV Steels Private Limited

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 2. IA(IBC)/1064(KB)2023- is an application filed under section 33 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) by the Resolution Professional (“RP”) of SAV Steels Private Limited, the Corporate Debtor, praying for initiation of liquidation process of the Corporate Debtor. This application is supported by an affidavitduly affirmed bytheRP. TheLd. Counsel appearing for theRP submits that: 3. This Adjudicating authority, on a petition filed u/s. 7 of the IBC read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Financial Creditor, vide order dated 28th October 2022 in CP(IB)/208(KB)2021, had ordered initiation of Corporate Insolvency Resolution Process (“CIRP”) against SAV Steels Private Limited, the Corporate Debtor appointing Mr. Mr.Uday Narayan Mitra, as the Interim Resolution Professional (“IRP”). The said order was dulycommunicated to theIRP bythe Registry. 4. In terms of regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, (“CIRP Regulations”) Public Announcements in Form A was published on 31/10/2022 in “Financial Express” (English) and “Ekdin” (Bengali) inviting claims from the creditors of the Corporate Debtorstipulating lastdate ofsubmissionof claimson11/11/2022. 5. In compliance of provisions of the Code and Regulations, the IRP had intimated the initiationofCIRP tovarious authorities such as ROC,RD, to all banks. 6. In response to public announcement, one claim was received from State Bank of India with the IRP and since the SBI was the solefinancial creditor and hence the CoC was constituted with SBI as its sole member. The IRP has received claims from ESI and directorate of Commercial Tax (in capacity as operational creditor).

7. The IRP held 6 CoC meetings on various dates. 1st CoC meeting 25/11/2022, 2nd CoC Meeting on 06/12/2022, 3rd CoC meeting on 11/01/2023, 4th CoC meeting on04/02/2023,5thCoC meeting on28/03/2023, 6thCoCmeeting on17/04/2023.

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 8. Thereafter, vide order dated 2nd May 2023 of this Adjudicating Authority, the IRP was replaced and the Applicant herein was appointed as the RP. The Applicant took charge of the CIRP of the CD from a very belated stage, of nearly 5.5 months after the expiry of the CIRP. The IRP till date hadfiled one progress report.

9. The IRP had published the Form G twice to invite expression of interest on 14th January, 2023 and again on 23rdFebruary 2023however there was no response to the same. The Form G on both the occasions were published in Financial Express in English and EK Din in Bengal. Copies of the Form G is annexed as letter“B”.

10. Thereafter, the 6th CoC meeting was held on 17th April 2023.In the said meeting, the CoC deliberated that since there was no business of the Corporate Debtor and no assets, there was no response to the Form G published and there was no scope of any resolution plan, the CoC advised the IRP to apply before NCLT for Liquidationof theCDin viewofnorealisableasset oftheCD.

11. The application for liquidation was filed by the IRP sometime on or around 21st April 2023and thesame has been numbered as IA No. 860/2023.

12. Thereafter, vide order dated 2nd May 2023 passed by this Adjudicating Authority, theIRP was replaced and theapplicant herein was appointed as theRP.

13. The RP after taking charge of the affairs of the CD and after taking handover of the documents from the IRP was of the view that certain mandatory requirements in the application under section 33 were amiss. The name of the liquidator was not proposed, the fees of the liquidator was not fixed, the estimated costs was not approved bythe CoC. Since the same are mandatory requirement as per the Code, the Applicant sent a notice on 16/05/2023 for convening the 7th CoC Meeting on 17thMay2023.

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 14. The7th CoC Meeting was held on 17thMay 2023wherein the agendas for naming the liquidator, Liquidator fees and estimated Liquidation Cost, consent of the CoC for this applicant to be appointed as the Liquidator and approval of CoC directing Applicant to file Rejoinder/Application for Liquidation of the Applicant were approved bythe CoC by 100%Voting. Copyof minutes of 7th CoCmeeting along with Votingresults annexed as Letter D.

15. The Applicant has agreed to continue as the Liquidator of the CD, and as such theConsent oftheApplicant and theAFA are annexed as Letter-E.

16. A unique situation arose which led to a fresh filing of this liquidation application even though an application with similar prayers have been filed being IA No. 860/2023. The previous application was filed by the IRP, Uday Narayan Mitra. After thefiling of theapplication, onand from 2ndMay2023, theApplicant is the RP and the IRP has no role after being substituted. Now since it was necessary to bring on record the additional information such as name of liquidator, his consent, his AFA, the fees of liquidator, the estimated liquidation cost, the RP cannot file a supplementary affidavit in an application filed by anther IRP. Thus, to avoid the complexities, the RP is filing a fresh application under section 33 and shall withdrawthe previous section 33application numbered as IA NO. 860/2023.

17. In the above scenario, the applicant has filed the instant application being IA(IBC)/1064(KB)2023 under section 33(2)(a)(i) of the IBC seeking initiation of liquidationprocess against theCorporate Debtor.

18. It is to be noted here that the CIRP period had already ended on 01/01/2023 and noextensionhas been sought bytheRP.

19. Section 33(1)(a) of the Code mandates that the Adjudicating Authority shall pass an order of liquidation where no resolution plan is received before the expiry of the CIRP. Sub-section (2) thereof requires the Adjudicating Authority to pass the liquidation order where the Resolution Professional intimates to the Adjudicating

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 Authority the decision of the Committee of Creditors approved by not less than 66%ofthe votingshare toliquidatetheCorporate Debtor.

20. A conjoint reading of these two provisions leaves this Adjudicating Authority withnoother option butto order liquidationof theCorporate Debtor.

21. ThisBench, therefore, hereby orders as follows: - a. IA(IBC)/1064(KB)2023 filed by Mr. Sanjai Kumar Gupta, RP of SAV Steels Private Limited, the Corporate Debtor, is allowed. Consequently, the Corporate Debtor is ordered to be liquidated in terms of section 33(2) of the Coderead with sub-section (1)thereof;

22. Though the RP has given his consent to act as the Liquidator of the Corporate Debtor but in view of the IBBI Circular dated 18/07/2023 vide no. Liq- 12011/214/2023-IBBI/840 for appointment of Liquidator other than IRP/RP undersection 34(4)(b) ofthe Code, we are appointing Mr. SunilChoraria,Regn. No. IBBI/IPA-002/IP-N01209/2022-2023/14078 having e-mail i.d. chorariamba@rediffmail.com, mobile no. 9831278326 as Liquidator as provided under section 34(1) of the Code, subject, however, to his possessing a valid Authorisation for Assignment (AFA) issued by the Insolvency Professional Agency (IPA) of which he is a professional member, in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2019. The Liquidator is directed to submit his consent to act as Liquidator within 10 days of receipt of this order. The erstwhile RP shall handover all papers and documents in his possession concerning the Corporate Debtorto theLiquidator appointed in thismatter within10days.

a. The Liquidator shall initiate liquidation process as envisaged under Chapter-III of the Code and the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 b. Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, i.e., in “Financial Express” (English) and “EKdin” (Bengali)stating that theCorporate Debtoris in liquidation.

c. All the powers of the Board of Directors, and of key managerial persons, shall cease to exist in accordance with section 34(2) of the Code. All these powers shall henceforth vest inthe Liquidator.

d. The personnel of the Corporate Debtor are directed to extend all assistance and co-operation tothe Liquidator as required by her inmanaging the liquidationprocess of theCorporate Debtor.

e. On initiation of the liquidation process but subject to section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor save and except the liberty to the Liquidator to institute suit or other legal proceeding on behalf of the Corporate Debtor with prior approval of this Adjudicating Authority, as provided in section 33(5) of the Code read withits proviso.

f. In accordance with section 33(7) of the Code, this liquidation order shall be deemed to be a notice of discharge to the officers, employees and workmen of the Corporate Debtor except to the extent of the business of the Corporate Debtorcontinued during the liquidation process bytheLiquidator.

g. In terms of section 33(1)(b)(iii), the Liquidator shall file a copy of this Order with the Registrar of Companies, West Bengal, within whose jurisdiction the Corporate Debtor is registered. Additionally, the Registry shall alsoforward acopy ofthisOrder to theRegistrar ofCompanies, West Bengal.

23. The application bearing IA(IBC)/1064(KB)2023 shall stand disposed of in accordance withtheabove directions.

24. CP(IB)/208(KB)2021 is to come up for filing of Periodical Progress Report on INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/1064(KB)2023 in CP(IB)/208(KB)2021 16thJanuary2024.

25. The Registry is directed to send e-mail copies of the order forthwith to all the parties and theirLd.Counsel for information and fortaking necessary steps.

26. Certified Copy of this order may be issued, if applied for, upon compliance of all requisiteformalities.

BalrajJoshi Bidisha Banerjee Member(Technical) Member (Judicial)

Signed onthis, the 20th day ofDecember, 2023.

hb.