# In the matter of A.K. Power Industries Pvt. Ltd. Company Application IA-199 & 793(KB)2021 in Company Petition CP(IB) No. 1376-KB-2018

> NCLT judgment dated 2021-08-11. Citation: TCN-2021-NCLT-01370. The case involves a Company Petition CP(IB) No. 1376/KB/2018 filed by Dewesh Auto Creative…

- **Court:** NCLT
- **Order date:** 11 Aug 2021
- **Citation:** TCN-2021-NCLT-01370
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ak-power-industries-pvt-ltd-company-application-ia-199-793kb2021-in-company-peti-998da565

## Summary

### Background

The case involves a Company Petition CP(IB) No. 1376/KB/2018 filed by Dewesh Auto Creative Services P. Ltd., the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against AK Power Industries P. Ltd., the Corporate Debtor. The petition was admitted on September 30, 2019, and an Interim Resolution Professional (IRP) was appointed, later replaced by PratimBayal as the Resolution Professional (RP). The RP issued Form G and appointed a Forensic Auditor. The Corporate Debtor raised objections regarding the genuineness of the Loan Agreement dated December 19, 2014, claiming it was never executed. The RP sought verification of the Loan Agreement, but the Financial Creditor did not

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## Facts

Dewesh Auto Creative Services P. Ltd. filed a Company Petition CP(IB)/1376/KB/2018 under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against AK Power Industries P. Ltd. The petition was admitted on September 30, 2019. Arun Kumar Khandelia was appointed as the Interim Resolution Professional, later replaced by PratimBayal. The Corporate Debtor disputed the genuineness of the Loan Agreement dated December 19, 2014, which formed the basis of the Financial Creditor's claim. The Financial Creditor did not provide the original Loan Agreement for verification despite requests from the RP and the Forensic Auditor. The Forensic Auditor could not complete the audit without verifying the Loan Agreement. The CoC rejected the Resolution Plan. The CIRP

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, AK Power Industries P. Ltd., should be liquidated under Section 33(2) …

**Ratio:** Section 33(2) of the Insolvency & Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Resolution Professional was unable to get any Resolution Plan approved by the

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**Interpretation:** Section 33 provides for liquidation when resolution efforts fail. The

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**Application:** Since no resolution plan was approved, the Tribunal invoked Section 33 and

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## Parties

- **Judges:** Rajasekh…; Harish Chander…
- **Respondents:** AK Power Industrie…

## Timeline

- **2018-01-01 — Company Petiti…**: Dewesh Auto Creative Services P. Ltd. filed…
- **2019-09-30 — Petition Ad…**: The Tribunal admitted the Company Petition and appointed Shri Arun Kumar Khandelia as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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