IN THE NATIONAL COMPANY LAW TRIBUNAL,

DIVISION BENCH – II, CHENNAI

IA(IBC)/1819/CHE/2023

in

CP/IB/377/CHE/2020

(filed under Regulation 32(e) r/w Regulation 32A of IBBI (Liquidation Process)

Regulations, 2016 read with Rule 11 of the NCLT, Rules, 2016)

In the matter of Nexus Electro Steel Limited

Chinar Steel SegmentCentre Private Limited,

Successful Bidder,

Through Mr. Raman Goyal,

Registered office at H. No. 51, Upper Ground Floor,

Vasudha Enclave, Pitampura, Delhi – 110 034.

… Applicant

Versus

Radhakrishnan Dharmarajan,

Liquidator of Nexus Electro Steel Limited

Registered Office at 202, Shivalaya, Block C,

16, Ethiraj Salai, Egmore,

Chennai, Tamil Nadu – 600 008

… Respondent

Order pronounced on 18th February 2025

CORAM

JYOTI KUMAR TRIPATHI, MEMBER (JUDICIAL)

RAVICHANDRAN RAMASAMY, MEMBER (TECHNICAL)

Present

For Applicant : Asim Ansari, Shalya Agarwal, Advocates

For Respondent : T. Ravichandran, Advocate

O R D E R

(Heard through Hybrid mode)

1. This application IA(IBC)/1819(CHE)/2023 has been filed by the Applicant/ Successful Bidder under Regulation 32A of IBBI (Liquidation Process) Regulations, 2016 read with Rule 11 of the NCLT, Rules, 2016 seeking

for allowing the Interim application along with passing of suitable orders in respect of the reliefs, concessions, directions, dispensations and exemptions in relation to the acquisition of the Corporate Debtor, namely Nexus Electro Steel Limited. The prayer apart from the reliefs and concession sought in the application are extracted hereunder, a. Allow the present application;

c. Pass appropriate order(s)/ direction(s) for taking on record the proposed Acquisition Plan of Applicant, for the smooth Acquisition of the Corporate Debtor on a going concern basis along with all reliefs, concessions and waivers set out thereunder;

d. Pass appropriate order(s)/ direction(s) that Direct that no penalty shall be levied on/payable by the Applicant for the time period taken by this Tribunal to approve the Acquisition Plan and the reliefs, waivers, exemptions and dispensations set out thereunder;

e. Pass appropriate order(s)/ direction(s) on the Liquidator to cooperate and assist the Applicant for the successful implementation Of the Corporate Debtor on a going concern basis;

2. The Corporate Insolvency Resolution Process (CIRP) in respect of the Corporate Debtor (CD) was ordered by this Tribunal vide order dated 30.05.2021 and one Mr. Mathur Sabhapathy Viswanathan was appointed as the Interim Resolution Professional (IRP). Later the respondent herein Mr. Radhakrishnan Dharmarajan was appointed as Resolution Professional (RP) vide order dated 17.01.2022. The CoC was composed of two financial creditors namely, State Bank of India holding majority 79% and ICICI Bank Limited holding 21% voting.

3. It is submitted that, during the 17^th CoC meeting, CoC resolved to liquidate the CD and vide order dated 09.09.2022, liquidation was initiated against the CD and RP himself was appointed as the Liquidator.

4. It is stated that the Preliminary report, Asset memorandum with valuation of the Corporate Debtor and Revised List of Stakeholders were submitted before this Tribunal vide IA(IBC)/980(CHE)/2023 which was taken on record by the order dated 20.06.2023

5. It is stated that, liquidator conducted three auctions for the sale of the Corporate Debtor fixing Reserve Price at Rs.30 Crores, on 27.02.2023, Rs.25 Crores on 28.03.2023 & Rs.22.50 Crores on 08.05.2023, where all three failed without having a successful bidder.

6. It is stated that, liquidator published an e-auction sale notice on 20.05.2023 in Business Standard (English), Prathakal (Marathi) and Makkal Kural (Tamil) inviting prospective bidders with two options, wherein a. Sale of CD as a whole on going concern basis and b. Piecemeal sale of the CD.

7. It is stated that Applicant paid the earnest money deposit for a sum of Rs.2,00,00,000/- and submitted the Bid Application Form, Bid Declaration Form, undertaking under Section 29A of the Code and all other documents as required, f