# In the matter of Aegan Industries Private Limited C.P.(IB) No. 20-BB-2017

> NCLT judgment dated 2018-07-06. Citation: TCN-2018-NCLT-01186. The case involves a Company Petition filed by M/s. Aegan Industries Private Limited under…

- **Court:** NCLT
- **Order date:** 6 Jul 2018
- **Citation:** TCN-2018-NCLT-01186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aegan-industries-private-limited-cpib-no-20-bb-2017-88280d73

## Summary

### Background

The case involves a Company Petition filed by M/s. Aegan Industries Private Limited under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the I&B (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Tribunal admitted the petition and appointed an Interim Resolution Professional (IRP), later replaced by a Resolution Professional (RP). The RP faced non-cooperation from the company's directors in handing over assets and documents. The Committee of Creditors (CoC) rejected the resolution plans received and decided to liquidate the company.

## Facts

M/s. Aegan Industries Private Limited filed a company petition under Section 10 of the IBC seeking to initiate CIRP. The Tribunal admitted the petition and appointed Shri S Muthuraju as Interim Resolution Professional, who was later replaced by Shri Ravindra Beleyur as Resolution Professional. The Resolution Professional faced difficulties in obtaining the necessary documents and assets from the company's directors, Mr. Thyagarajan Arun Kumar and Mrs. Arunkumar Bhadra Devi, despite repeated requests. The Committee of Creditors (CoC) held multiple meetings but ultimately rejected the resolution plans submitted by Nimbark Fashions Limited and Eveready Spinning Mills (P) Ltd. due to their being below expectations. Consequently, the CoC decided to liquidate M/s. Aegan

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Aegan Industries Private Limited, should be liquidated under …

**Ratio:** Section 33(1) of the IBC states that where the Adjudicating Authority does not receive a

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**Reasoning:** The Committee of Creditors rejected the resolution plans submitted by Nimbark Fashions

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**Interpretation:** Section 33(1) of the IBC mandates liquidation when a resolution plan is not

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**Application:** Since the CoC rejected the resolution plans, and no viable plan was

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## Parties

- **Judges:** Rajeshwara Rao…; Ashok Kumar…
- **Respondents:** M/s.Aegan…; State Bank of…

## Timeline

- **2017-01-01 — Company Petiti…**: M/s. Aegan Industries Private Limited filed a Company Petition bearing No. C.P. (IB)…
- **2017-10-13 — Appointment of…**: Shri Ravindra Beleyur is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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