The commercial wisdom of the Committee of Creditors (CoC) regarding the consolidation of CIRPs is paramount, especially when consolidation would delay an advanced resolution process of one of the group entities.

ORDER

Per: Smt. Bidisha Banerjee, Member (Judicial)

1. This Court congregated through a hybrid mode.

2. Heard the Learned Counsels for both parties.

3. The instant application being I.A. (IB) No. 1726/KB/2025, has been preferred by a Suspended Board of M/s. Sarita Steel & Power Limited, through Mr. Vipul Mehra under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, for brevity “I&B Code” against the respondent Mr. Sanjeev Kumar Jalan & Ors. seeking the following reliefs:

A. An order be made directing substantive consolidation of the CIRPs of the Ankita Metal and Power Limited and Sarita Steel and Power Ltd. into a single proceeding solely for the purposes of CIRP in accordance with the provisions of the Code, including but not limited to the acceptance, confirmation and all other actions with respect to the resolution plan for the Corporate debtors and any and all amendments or modifications thereto, in such consolidated proceedings;

B. Order and direct that solely for the purpose of consolidating CIRP proceedings, all assets and liabilities of Ankit Metal and Power Limited and Sarita Steel and Power Ltd. be merged and deemed to be the assets and liabilities of all the Corporate Debtors on a consolidated basis;

C. Order and direct that each and every claim filed in the individual proceedings of any of the Corporate Debtors in the consolidated proceedings;

D. Order and direct that a common CoC may be constituted for the Corporate Debtors so that the decision-making process in relation to the CIRP may be done in an efficient manner and to diminish the scope of any conflicting decision;

E. Order and direct that both the Corporate debtors based on relevant factors including but not limited to commonality of business may be formulated and approved by the CoC and placed before this Hon’ble Tribunal for its approval in accordance with the provisions of the Code and grant such other or further reliefs as this Hon’ble Adjudicating Authority deems fit in the facts and circumstances of the case.

F. An order be made to stay the CIRP of both Ankit Metals and Sarita Steel and Power Ltd., the Corporate Debtor herein, pending the disposal of the instant application.

G. Ad interim orders in terms of the prayers above;

H. Pass such further or order or order and/or direction or directions be given as this Hon’ble Tribunal may deem fit and proper.

4. FACTS OF THE CASE

4.1 Sarita Steel & Power Limited is a corporate guarantor of Ankit Metal & Power Limited in respect of credit facilities extended by UCO Bank. Sarita Steel owns 10.49 acres of land which was leased to Ankit Metal for a period of 50 years by a registered deed dated 19.09.2011 and a part of the factory of Ankit Metal is constructed over the said land.

4.2 While Ankit Metal was admitted into CIRP by order dated 03.05.2024, Sarita Steel was admitted into CIRP on 19.12.2024. It is claimed that both the Corporate Debtors belong to the same group, having common promoters, common directors, common lenders and interlinked assets and liabilities.

4.3 By way of an earlier order dated 09.04.2025, this Tribunal directed a land survey and left the question of consolidation of CIRPs to the commercial wisdom of the Committee of Creditors. The land survey is complete.

4.4 The survey report suggests that the factory of Ankit Metal is situated over a total land area of about 141.264 acres, including 10.49 acres of land owned by Sarita Steel and about 35 acres of private third-party land. It is claimed that no physical demarcation exists between these