# In the matter of Bala Techno Industries Limited IA No. 135-KB-2021 in CP (IB) No. 1406-KB-2018

> NCLT judgment dated 2021-02-15. Citation: TCN-2021-NCLT-03042. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 15 Feb 2021
- **Citation:** TCN-2021-NCLT-03042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bala-techno-industries-limited-ia-no-135-kb-2021-in-cp-ib-no-1406-kb-2018-53d351fa

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Bala Techno Industries Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Oriental Bank of Commerce under section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority appointed the Applicant as the Interim Resolution Professional (IRP). Despite multiple invitations for Expression of Interest (EoI) and publication of Form G, no resolution plan was received. The Committee of Creditors (CoC) then resolved to initiate liquidation against the Corporate Debtor.

## Facts

Oriental Bank of Commerce initiated CIRP against Bala Techno Industries Limited under Section 7 of the IBC. The Adjudicating Authority appointed an Interim Resolution Professional (IRP), who was later confirmed as the Resolution Professional (RP). Despite publishing Form G thrice, no resolution plan was received. The CoC approved the initiation of liquidation under Section 33(2) of the IBC. The RP applied to the Adjudicating Authority for liquidation. The CIRP period was extended, but no resolution plan materialized. The CoC approved the RP's fees as Liquidator. The Adjudicating Authority considered the RP's submission and the lack of a resolution plan before ordering liquidation.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Bala Techno Industries Limited, should be liquidated under section …

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

…

**Reasoning:** The court reasoned that despite multiple attempts to solicit resolution plans, none were

…

**Interpretation:** Section 33(2) is interpreted to mean that if all efforts to find a resolution

…

**Application:** In this case, the absence of a resolution plan, despite the publication of Form

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Bala Techno…

## Timeline

- **2019-10-15 — Order for CIRP…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2019-11-14 — First CoC M…**: First meeting of the Committee of Creditors (CoC) was held, wherein the IRP was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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