# In the matter of Alucast Auto Parts Limited

> NCLT judgment dated 2021-02-10. Citation: TCN-2021-NCLT-03074. The case involves an application for the dissolution of Alucast Auto Parts Limited, a Corporate…

- **Court:** NCLT
- **Order date:** 10 Feb 2021
- **Citation:** TCN-2021-NCLT-03074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alucast-auto-parts-limited-8749366f

## Summary

### Background

The case involves an application for the dissolution of Alucast Auto Parts Limited, a Corporate Debtor undergoing liquidation. Initially, the Corporate Debtor itself filed for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), which was admitted by the NCLT Bengaluru Bench. Rakesh Chaturvedi was appointed as the Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) approved the liquidation of the company, and Rakesh Chaturvedi was appointed as the Liquidator. The Liquidator took steps to consolidate claims, issue public notices, and prepare reports as required by the IBBI (Liquidation Process) Regulations, 2016.

## Facts

Alucast Auto Parts Limited initiated CIRP under Section 10 of IBC, which was admitted by NCLT Bengaluru. Rakesh Chaturvedi was appointed as IRP and later as Liquidator after the CoC approved liquidation. Public announcements were made, and claims were consolidated. The company had no realizable assets and liabilities exceeding Rs. 260 Crores. Edelweiss Asset Reconstruction Company Limited (EARC) raised concerns about prior asset sales by State Bank of India (SBI) but agreed to liquidation. The Liquidator submitted final reports and audited liquidation accounts. The company's financial status showed a loss of Rs. 19,37,00,044/- and a total deficit of Rs. 172,21,41,632.19/-. The admitted claims amounted to Rs.255,09,39,693/-. The liquidation process was completed on

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Alucast Auto Parts Limited, should be dissolved given its lack of …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the

…

**Reasoning:** The court reasoned that the Corporate Debtor had no realizable assets and liabilities

…

**Interpretation:** Section 54(2) grants discretionary powers to the Adjudicating Authority to

…

**Application:** The court applied Section 54(2) and Regulation 14 to the facts of the case,

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Rakesh Chat…
- **Respondents:** Alucast Auto…

## Timeline

- **2020-06-09 — Admission of CIRP…**: The NCLT Bengaluru Bench admitted the application for Corporate Insolvency Resolution…
- **2020-09-02 — Liquidation Commencement…**: The Committee of Creditors (CoC) approved the liquidation of the company, and Rakesh…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/alucast-auto-parts-limited-8749366f