In the matter of Shyama Iron & Alloys Private Limited

Under section 33(1)(a) of theInsolvency &Bankruptcy Code, 2016 read with regulations39B, 39C and39Dof IBBI (InsolvencyResolution Process for CorporatePersons)Regulations, 2016and Regulation 32(F) of theIBBI (Liquidation Process) Regulations,2016

Inthematter of: Chaitanya Alloys PrivateLimited ….Financial Creditor Versus Shyama Iron andAlloys PrivateLimited (U27109WB1997PTC084572) ....Corporate Debtor And Inthematter of: SushantaKumar Choudhury, ResolutionProfessional of Shyama Iron and Alloys PrivateLimited …Applicant

Order reserved on:08/02/2023 Orderpronounced on: 18/04/2023

Coram: Smt. Bidisha Banerjee : Member (Judicial) ShriBalrajJoshi : Member (Technical)

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019

Appearances (through hybrid mode): For RP : Mr. A. S. Ray, Adv. Mr. SushantaKumar Choudhury, RPin person

O RDE R

Per:Bidisha Banerjee, Member (Judicial) 1. ThisAdjudicating Authority convened through hybrid mode.

2. IA(IBC)/677(KB)2022 is an application filed under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 (in short “IBC”) by the Resolution Professional (“RP”) of Shyama Iron and Alloys Private Limited, the Corporate Debtor, praying for liquidation of the Corporate Debtor. This application is supported by an affidavit1 duly affirmed by Ms. Sushanta Kumar Choudhury, theRP.

3. This Adjudicating authority, on a petition filed u/s. 7 of the Insolvency and Bankruptcy Code, 2016 read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Chaitanya Alloys Private Limited, the Financial Creditor, vide order2 dated 18/11/2021 in CP(IB)/2095(KB)2019, had ordered initiation of CIRP against Shyama Iron and Alloys Private Limited, the Corporate Debtor. Mr. Sushanta Kumar Choudhury was appointed as the Interim Resolution Professional (“IRP”). The said order was dulycommunicated to theIRP bythe Registry.

4. In terms of section 15 of the IBC, Public Announcements3 in Form A was published in “Financial Express” (English) and “Aajkal” (Bengali) on 21/11/2021 and 20/11/2021 respectively inviting claims from the creditors, stipulatinglast dateof submission ofclaims on01/12/2021. 1Atpages16and17oftheapplication 2Annexure“1”atpages25to28oftheapplication 3Annexure“A”atpages6and7ofthesupplementaryaffidavitaffirmedon03/02/2023

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019

5. A copy of the order of commencement of CIRP was submitted to MCA4 as well as Income Tax and GST Department. Constitution of Committee of Creditors5 (“CoC”) was submitted to the Adjudicating Authority on 08/12/2021 and subsequently, the change in the constitution of the CoC due to assignment of debts by one the creditor, i.e., M/s. BIGIL was intimated to this Adjudicating Authority on11/03/2022

6. The first CoC meeting6 was held on 15/12/2021. At the said 1st CoC meeting, the CoC has confirmed the continuation of the IRP as Resolution Professional (“RP”). The second CoC meeting7 was held on 14/01/2022. The salient point of discussionsheld in themeeting were given as under:

(a) The claim of Rs.52.78 Crores made by the Commissioner of Commercial Taxes, Govt. of West Bengal, so far treated as contingent liability in the books of account, was accepted on the verdict given by the Appellate & Revisional Board of the Department of Commercial Taxes, Government of WestBengal;

(b) Mr. Pranab Kumar Chakraborty, FCMA & RV and Mr. Anil Kumar Gupta, FCA & RV were appointed (Annexure 7) as registered valuers on 27/01/2022 for valuation of securities and Financial Assets (SFA);

(c) Mrs. Arundhati Basu was appointed (Annexure 8) as consultants to assist the Resolution Professional in the matter ofaccounting, taxation and filing ofreturns;

(d) Information Memorandum (IM) (Annexure 9) containing all details of the Corporate Debtors were circulated to all members of the CoC on07/01/2022. 4 Annexure“3”atpages30to32oftheapplication 5 Annexure“4”atpages33to58oftheapplication 6 Annexure“5”atpages59to63oftheapplication 7 Annexure“6”atpages64to69oftheapplication

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019

7. In terms of regulation 36A(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 Form G8 was first published in “Business Standard” (English) and “Aajkal” (Bengali) on 18/01/2022, stipulating last date of receipt of Expression of Interest (“EoI”) as 02/02/2022. Out of 8 (eight) EoI received, three were rejected due to submission after due date. After approval of the CoC in its 3rd Meeting9 held on 28/01/2022, Request for Resolution Plan (‘RFRP’) and eligibility criteria were issued to those who submitted their EoI within time for submission of Resolution Plan but none of them submitted their ResolutionPlan.

8. At the 4th CoC meeting10 held on 07/02/2022, the applicant apprised the CoC that the claims of the Commissioner of Commercial Taxes, Govt. of West Bengal has been revised and reduced by Rs.5.80 Crores on account of advance payment made to the Commissioner of Commercial Taxes under protest against the demand made by the Bureau of Investigation, Commercial Taxes, thereby the claim has been reduced to Rs.46.98 Crores from Rs.52.78 Crores resulting in reductionof votingshare from 30.72%to28.30%.

9. At the 5th CoC meeting11 held on 02/03/2022, the applicant apprised the CoC that against 2nd publication of Form G12, only one successful EoI was received from M/s. Sunrise Industries, New Delhi within the due date but the party finally backed out/ withdraw the application vide e-mail dated 12/03/2022 on the ground that theCorporate Debtor does nothave tangiblefixed assets.

10. At the 6th CoC meeting13 held on 28/03/2022, the CoC with 99.79% voting share has decided for liquidation of the Corporate Debtor under section 33(1)(a) of the Codeand passed thefollowing Resolutions:-

8 Annexure“B”atpages8and9ofthesupplementaryaffidavitaffirmedon03/02/2023 9 Annexure12atpages95to98oftheapplication 10 Annexure13atpages99to103oftheapplication 11 Annexure14atpages104to108oftheapplication 12 Annexure“B”atpages10and11ofthesupplementaryaffidavitaffirmedon03/02/2023 13 Annexure“15”atpages109to114oftheapplication

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019 “Resolved that the initiation of liquidation process against Shyama Iron & Alloys Private Limited, the Corporate Debtor, be and is hereby approved by 99.79% voting share of the Committee of Creditors as per requirement of the provisions of section 33(2) of the Insolvency and Bankruptcy Code, 2016.”

“Resolved further that the Resolution Professional be and is hereby authorized to submit the petition before the Adjudicating Authority (NCLT) for approval of the liquidation process and passing the liquidation order.”

11. At the 7th CoC meeting14 held on 11/04/2022 the CoC has nominated Mr. Uttam Tekriwal, an insolvency professional to act as Liquidator of the Corporate Debtor and accordingly has passed thefollowing resolution with 99.79%voting share:

“Resolved that Mr. Uttam Tekriwal, an Insolvency Professional having registered with IBBI vide no. IBBI/IPA-001/IP-P02192/2020-2021/13365 and who has consented to act as Liquidator of Shyama Iron & Alloys Private Limited, the Corporate Debtor be and is hereby appointed as Liquidatorof theCorporateDebtor (CD).”

Further resolved that the Resolution Professional be and is authorized to file a petition before the Hon’ble National Company Law Tribunal (NCLT) for approval of the liquidation process and Liquidator of the CD.”

12. Mr. Uttam Tekriwal has submitted his consent15 dated 31/03/2022 to act as the Liquidator of the Corporate Debtor along with Authorisation for Assignment (AFA)and IBBI registration certificate. 13. The 180 days CIRP period has ended on 16/05/2022 and no application for extensionoftheCIRP period has beenfiled.

14 Annexure“16”atpages115to119oftheapplication 15 Annexure“17”atpages120to123oftheapplication

INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019

14. 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 Authority the decision of the Committee of Creditors approved by not less than 66%ofthe votingshare toliquidatetheCorporate Debtor.

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

16. ThisBench, therefore, hereby orders as follows: - a. IA(IBC)/677(KB)2022 filed by Mr. Sushanta Kumar Choudhury, RP ofShyama Iron and Alloys Private Limited,the Corporate Debtor, is allowed. Consequently, the Corporate Debtor is ordered to be liquidated in terms of section33(2) ofthe Coderead with sub-section (1)thereof;

b. Mr. Uttam Tekriwal [Reg. No. IBBI/IPA-001/IP-P02192/2020- 2021/13365] of 35, Dhakuria Station Road, Kolkata 700031, having e-mail i.d. uttam.tekriwal@gmail.com, telephone no. 98319 13569 is hereby appointed 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.

c. 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.

d. Public Notice shall be issued in the same newspapers in which advertisements were issued earlier, i.e., in “Business Standard” (English) and INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019 “Aajkal” (Bengali)stating that theCorporate Debtor isinliquidation.

e. 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.

f. The personnel of the Corporate Debtor are directed to extend all assistance and co-operation to the Liquidator as required by him in managing theliquidation process oftheCorporate Debtor.

g. 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 with itsproviso.

h. 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.

i. 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.

17. The application bearing IA(IBC)/677(KB)2022 shall stand disposed of in accordance withtheabove directions.

18. CP(IB)/2098(KB)2019 is to come up for filing of Periodical Progress Report on 13/07/2023.

19. The Registry is directed to send e-mail copies of the order forthwith to all the INTHENATIONALCOMPANYLAWTRIBUNAL KOLKATABENCH(CourtII) IA(IBC)/677/KB/2022 inCP(IB)/2098(KB)2019 parties and theirLd.Counsel for information and fortaking necessary steps.

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

BalrajJoshi Bidisha Banerjee Member(Technical) Member (Judicial)

Signed on this, the18thday ofApril, 2023.

hb.