# In the matter of Baid Narrow Fab Pvt. Ltd. IA 854 of 2020 in CP(IB) 178-NCLT-AHM-2019

> NCLT judgment dated 2021-01-08. Citation: TCN-2021-NCLT-03346. The case involves an application filed under Section 33(2) and Section 34 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jan 2021
- **Citation:** TCN-2021-NCLT-03346
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baid-narrow-fab-pvt-ltd-ia-854-of-2020-in-cpib-178-nclt-ahm-2019-0f5a425a

## Summary

### Background

The case involves an application filed under Section 33(2) and Section 34 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP), Mr. Sunil Kumar Agarwal, for the liquidation of M/s. Baid Narrow Fab Private Limited. The Committee of Creditors (CoC), consisting of one Financial Creditor (State Bank of India), passed a resolution on 12.11.2020 for the liquidation of the corporate debtor and to appoint the RP as the liquidator.

## Facts

The Resolution Professional (RP), Sunil Kumar Agarwal, filed an application for the liquidation of Baid Narrow Fab Private Limited under Section 33(2) and Section 34 of the Insolvency and Bankruptcy Code, 2016. No resolution plan was received after the publication of the Expression of Interest. The Committee of Creditors (CoC), consisting of State Bank of India as the sole financial creditor, passed a resolution on November 12, 2020, in its 7th meeting, to liquidate the corporate debtor and appoint the RP as the liquidator. The CoC's decision was based on its commercial wisdom, with 100% voting in favor of liquidation. The application was filed in IA 854 of 2020 in CP(IB) 178/NCLT/AHM/2019. The suspended management was present during the hearing.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Baid Narrow Fab Private …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in deciding

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**Reasoning:** The court noted that the CoC, consisting of one financial creditor, had voted 100% in

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**Interpretation:** Section 33(2) and Section 34 of the IBC provide the framework for initiating

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

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Baid Narrow Fab…; Ashok Kuma…

## Timeline

- **2020-11-12 — CoC Resol…**: The Committee of Creditors (CoC) passed a resolution in its 7th meeting to liquidate the…
- **2021-01-08 — Order Da…**: The Adjudicating Authority allowed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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