# In the matter of Baldeo Metals Private Limited I.A. 5288-2020 in Company Petition No. 1808(ND)-2019

> NCLT judgment dated 2021-03-02. Citation: TCN-2021-NCLT-02852. The case involves an application filed by the Resolution Professional (RP) under Section 33(2)…

- **Court:** NCLT
- **Order date:** 2 Mar 2021
- **Citation:** TCN-2021-NCLT-02852
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baldeo-metals-private-limited-ia-5288-2020-in-company-petition-no-1808nd-2019-168c5c89

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, Baldeo Metals Private Limited. The Financial Creditor, Tata Capital Financial Services Limited, had previously filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 04.06.2020. The RP was appointed after the initial IRP was replaced. The Committee of Creditors (CoC) ultimately decided to liquidate the Corporate Debtor due to concerns about the lack of assets and inventories.

## Facts

Tata Capital Financial Services Limited, the Financial Creditor (FC), initiated Corporate Insolvency Resolution Process (CIRP) against Baldeo Metals Private Limited, the Corporate Debtor (CD), under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 04.06.2020, initiating CIRP and appointing Mr. Dhiren Shantilal Shah as the Interim RP (IRP). The IRP made a public announcement and constituted a Committee of Creditors (CoC). The applicant, Mr. Prabhat Ranjan Singh, was appointed on 26.08.2020, replacing the IRP. The applicant proposed to the CoC to publish Form-G for inviting Expression of Interest from prospective Resolution Applicants. However, the CoC decided to liquidate the CD in its 5th meeting held on 12.11.2020, citing that the

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional (RP) under Section 33(2) of the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, authorizes the Committee of

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**Reasoning:** The court reasoned that the CoC had taken a decision to go into liquidation keeping in

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**Interpretation:** Section 33(2) grants the CoC the power to decide on liquidation if a resolution

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**Application:** The court applied the ratio by considering the CoC's decision to liquidate the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Respondents:** Baldeo Metals…

## Timeline

- **2020-06-04 — CIRP Init…**: Application under Section 7 of the Code admitted, initiating CIRP against the Corporate…
- **2020-08-26 — RP Appoin…**: Mr. Prabhat Ranjan Singh appointed as…

## 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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