Rashmi Cement Limited vs Deep Star Alloys and Steels Limited — Bombay HC (2026) — LawSathi Research

Rashmi Cement Limited vs Deep Star Alloys and Steels Limited — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Interim Application allowed and disposed: Applicant permitted to carry out necessary and consequential amendments as per the schedule annexed (prayer clauses (a) and (b)); Applicant to be substituted in place of the Plaintiff; amendments within four weeks; amended proceedings to be served on the Defendant within two weeks thereafter with an appropriate Affidavit of service; Suit to be listed on 2nd July 2026.

Issue for consideration

Whether the successful Resolution Applicant, having acquired the Plaintiff (undergoing CIRP) as a going concern with its assets and litigation-recovery rights via the auction and Certificate of Sale dated 1 April 2025, could be substituted in place of the Plaintiff and permitted consequential amendments so as to continue and prosecute the Suit.

Court's answer

The Interim Application No. 7802 of 2025 is allowed in terms of prayer clauses (a) and (b), whereby the Applicant is permitted to carry out necessary and consequential amendments to the pleadings as per the schedule annexed to the application.

Ratio / Principle

The Applicant is to be substituted in place of the Plaintiff; the consequential amendments are to be carried out within a period of four weeks, and the amended proceedings served upon the Defendant within two weeks thereafter, with an appropriate Affidavit of service to be filed.

Detailed headnote1 paragraphs

Bombay High Court (Ordinary Original Civil Jurisdiction) — Commercial Suit No. 1401 of 2018, Yatin Steels India Pvt. Ltd. v. Deep Star Alloys and Steels Pvt. Ltd.; order dated 16 April 2026 of ABHAY AHUJA, J. on Interim Application No. 7802 of 2025 filed by the successful Resolution Applicant approved by the NCLT (entity name not stated in the order), represented by Ms. Chaula Solanki with a team from Nagi & Associates; none appeared for the Defendant - Resolution Professional despite confirmed service. Following the Plaintiff's CIRP, an auction of its assets on an 'as is where is', 'as is what is' and 'whatever there is' basis culminated on 10 March 2025, after which the Applicant acquired the Plaintiff as a going concern with its assets and certain rights, including the right to recoveries under litigation, per Certificate of Sale dated 1 April 2025. The IA was allowed in terms of prayer clauses (a) and (b): the Applicant was substituted in place of the Plaintiff, permitted to make necessary and consequential amendments as per the annexed schedule; amendments to be completed within four weeks, amended proceedings to be served on the Defendant within two weeks thereafter with affidavit of service; Suit listed for 2 July 2026.

38-COMS-1401-2018.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

COMMERCIAL SUIT NO. 1401 OF 2018

YATIN STEELS INDIA PVT. LTD. )… PLAINTIFF

V/s.

DEEP STAR ALLOYS AND STEELS PVT. LTD. )… DEFENDANT WITH INTERIM APPLICATION NO. 7802 OF 2025 IN COMMERCIAL SUIT NO. 1401 OF 2018

Ms.Chaula Solanki a/w. Mr.H.H.Nagi, Mr.Niranjana Pradhan, Mr.Dev Shah, Ms.Omna Shinde, Ms.Supriya Mishra, Ms.Priyadarshini Chedda i/by Nagi & Associates, Advocate for the Applicant in IA/7802/2025. None for the Defendant.

CORAM : ABHAY AHUJA, J. DATE : 16^th April 2026

P.C. :

INTERIM APPLICATION NO. 7802 OF 2025

ARTI VILAS KHATATE

Digitally signed by ARTI VILAS KHATATE Date: 2026.04.17 12:21:04 +0530

Ms.Solanki, learned Counsel, appears for the Interim Applicant and submits that the Interim Application has been served upon the Defendant and an appropriate Affidavit of service has also been filed, which is confirmed by the learned Court Associate. Ms.Solanki submits that, accordingly, the Interim Application be allowed, as the Interim Applicant is the successful Resolution Applicant as approved by the National Company Law Tribunal (NCLT).

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38-COMS-1401-2018.doc

None appears for the Defendant - Resolution Professional, despite service.

It is observed from the application and also as submitted by Ms.Solanki appearing for the Applicant that the Plaintiff underwent CIRP and pursuant to the insolvency proceedings and an auction thereupon for sale of assets of the Plaintiff on an ‘as is where is’, ‘as is what is’ and ‘whatever there is basis’, the Applicant participated and the auction was culminated on 10^th March 2025 after which the Applicant has acquired the Plaintiff as a going concern along with its assets and certain rights, including the right to recoveries under litigation in accordance with the Certificate of Sale dated 1^st April 2025.

Ms.Solanki submits that since there was lack of information regarding the pending cases, there has been some delay in making this application. That, since the Applicant has acquired the business undertaking and assets of the Plaintiff as a successful Resolution Applicant, the Applicant has become a lawful successor to all litigation rights previously vested in the Plaintiff and entitled to continue and prosecute the Suit. That, therefore, this Court may allow the application.

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38-COMS-1401-2018.doc

Having heard the learned Counsel and having considered the submissions and having perused the application with her assistance, the Interim Application is allowed in terms of prayer clauses (a) and (b) which read thus :

“(a) That this Hon'ble Court be pleased to allow the Interim Application filed by the Applicant and the Applicant may be permitted to carry out necessary and consequential amendments as per the schedule annexed to this application.

(b) This Hon'ble Court may be pleased to allow the Applicant to carry out consequential amendments in the pleadings as per the schedule annexed.”

Let the Applicant be substituted in place of the Plaintiff and let the consequential amendments be carried out within a period of four weeks and the amended proceedings be served upon the Defendant in two weeks thereafter and an appropriate Affidavit of service be filed.

The Interim Application accordingly stands allowed and disposed

as above.

COMMERCIAL SUIT NO. 1401 OF 2018

List the Suit on 2^nd July 2026 .

(ABHAY AHUJA, J.)

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