# In the matter of Alucast Auto Parts Limited I.A. No. 272-2020 in C.P. (IB)No.121-BB-2020

> NCLT judgment dated 2020-09-02. Citation: TCN-2020-NCLT-00732. The case involves an application (I.A. No. 272/2020) filed in C.P.(IB) No. 121/BB/2020 by the…

- **Court:** NCLT
- **Order date:** 2 Sept 2020
- **Citation:** TCN-2020-NCLT-00732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alucast-auto-parts-limited-ia-no-272-2020-in-cp-ibno121-bb-2020-f90163bb

## Summary

### Background

The case involves an application (I.A. No. 272/2020) filed in C.P.(IB) No. 121/BB/2020 by the Resolution Professional (RP) of Alucast Auto Parts Limited, seeking an order for the liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2020-06-09, and Rakesh Chaturvedi was appointed as the Interim Resolution Professional (IRP). Public notice was issued, and claims were received from financial creditors. The Committee of Creditors (COC) was formed, consisting of State Bank of India and Edelweiss Asset Reconstruction Company Limited (EARC).

## Facts

Alucast Auto Parts Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by the Adjudicating Authority on 2020-06-09. Rakesh Chaturvedi was appointed as the Interim Resolution Professional (IRP). A public notice was issued, and claims were received from financial creditors, including State Bank of India (SBI) and Edelweiss Asset Reconstruction Company Limited (EARC). The Committee of Creditors (COC) was formed. During the COC meetings, the possibility of revival was considered but deemed unfeasible due to the company's poor financial status, lack of assets, and significant liabilities exceeding Rs. 200 Crores. EARC raised concerns about the legality of property sales conducted by SBI under SARFESAI, where SBI had the first charge. The COC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Alucast Auto Parts Limited, should be liquidated due to the lack of a …

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

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**Reasoning:** The Adjudicating Authority considered the assessment made by the Resolution Professional

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**Interpretation:** Section 33(2) provides the legal basis for ordering liquidation when a

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**Application:** In this case, the RP and COC determined that Alucast Auto Parts Limited had no

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## Parties

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

## Timeline

- **2020-06-09 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-06-13 — Public N…**: IRP issued public notice as…

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