# In the matter of Apex Buildsys Ltd. (IB)-706(PB)-2018

> NCLT judgment dated 2020-01-09. Citation: TCN-2020-NCLT-02413. The case involves a liquidation application filed under Section 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Jan 2020
- **Citation:** TCN-2020-NCLT-02413
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/apex-buildsys-ltd-ib-706pb-2018-a848e1e7

## Summary

### Background

The case involves a liquidation application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Apex Buildsys Ltd. The Committee of Creditors (CoC) passed a resolution with 87.30% voting in favor of liquidation on 22.10.2019. The company petition was initially admitted on 20.09.2018, and Mr. Gyan Chand Narang was appointed as the Interim Resolution Professional. The Resolution Professional received claims from creditors, totaling Rs. 444.60 crores. Two resolution plans were presented to the CoC but were rejected as they were deemed conditional and not reflective of the corporate debtor's value.

## Facts

ICICI Bank Ltd. filed an application against Apex Buildsys Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Apex Buildsys Ltd. The company petition was admitted on 20.09.2018, and Mr. Gyan Chand Narang was appointed as the Interim Resolution Professional. Claims from creditors amounted to Rs. 444.60 crores. Two resolution plans were submitted but rejected by the CoC due to conditional arrangements and failure to reflect the corporate debtor's value. Consequently, the CoC passed a resolution on 22.10.2019 with 87.30% voting in favor of liquidation. The liquidation application was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The CoC

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## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, Apex Buildsys Ltd., is justified based on the …

**Ratio:** The CoC has the authority to make commercial decisions regarding the resolution or

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**Reasoning:** The court noted that the CoC, in its commercial wisdom, concluded that the resolution

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, grants significant autonomy to the

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was

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## Parties

- **Judges:** B.S.V. Prakash…; S. K. MOH…
- **Appellants:** ICICI Ban…
- **Respondents:** Apex Builds…

## Timeline

- **2018-09-20 — Company Petition…**: The company petition was admitted, and Mr. Gyan Chand Narang was appointed as Interim…
- **2019-10-22 — CoC Resolution for…**: The Committee of Creditors (CoC) passed a resolution with 87.30% voting in favor of…

## 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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