# In the matter of Auro Mira Energy Co. Private Limited CP-473(IB)-CB-2017

> NCLT judgment dated 2018-01-04. Citation: TCN-2018-NCLT-01964. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of M/s. Auro Mira…

- **Court:** NCLT
- **Order date:** 4 Jan 2018
- **Citation:** TCN-2018-NCLT-01964
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/auro-mira-energy-co-private-limited-cp-473ib-cb-2017-0bc24973

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of M/s. Auro Mira Energy Company Private Limited. An application was filed under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. During the CIRP, no viable resolution plan could be prepared and presented to the Committee of Creditors (CoC). A resolution for liquidation was proposed in the 4th meeting of the CoC, but some members were not available in person, leading to electronic voting. The Bank of India approved the liquidation plan, while IDBI Bank Ltd and Phoenix ARC Ltd abstained. The required 75% voting threshold under Section 21(8) was not met, and the resolution failed.

## Facts

Mr. R.Venkatakrishnan, the Resolution Professional, filed an application for the initiation of liquidation proceedings against M/s. Auro Mira Energy Company Private Limited, the Corporate Debtor. The CIRP had commenced, but no viable resolution plan could be formulated and presented to the Committee of Creditors (CoC). In the 4th meeting of the CoC, a resolution for liquidation was proposed. Due to the unavailability of some members in person, electronic voting was conducted. While the Bank of India approved the liquidation plan, IDBI Bank Ltd and Phoenix ARC Ltd abstained from voting. As a result, the minimum 75% voting threshold, as required by Section 21(8) of the Insolvency and Bankruptcy Code (IBC), was not achieved. The order dated 19.06.2017 had expired on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Auro Mira Energy Company Private Limited, should be liquidated …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, empowers the Adjudicating

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**Reasoning:** The court reasoned that since no viable resolution plan was approved by the CoC, and the

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**Interpretation:** Section 33(1)(a) provides a clear mandate for liquidation when the CIRP fails

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**Application:** In this case, the CoC's failure to approve a resolution plan, evidenced by the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** R.VENKATAKR…
- **Respondents:** M/s. Auro Mira…

## Timeline

- **2017-06-19 — Order Da…**: Order dated 19…
- **2017-12-18 — Order Ex…**: Order dated 19.06.2017…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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