# In the matter of Bansal Refineries Pvt. Ltd. CA(IB) No. 1540-KB-2019 in C.P. (IB) No. 11-KB-2019

> NCLT judgment dated 2020-01-17. Citation: TCN-2020-NCLT-02292. The case pertains to an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Jan 2020
- **Citation:** TCN-2020-NCLT-02292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bansal-refineries-pvt-ltd-caib-no-1540-kb-2019-in-cp-ib-no-11-kb-2019-15647868

## Summary

### Background

The case pertains to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for the initiation of the Corporate Insolvency Resolution Process (CIRP) against M/S. Bansal Refineries Private Limited. The application was filed by Corporation Bank, the financial creditor. The CIRP was initiated on August 13, 2019, and Mr. Pinaki Sircar was appointed as the Interim Resolution Professional (IRP).

## Facts

Corporation Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/S. Bansal Refineries Private Limited. The application was admitted on August 13, 2019, and Pinaki Sircar was appointed as the Interim Resolution Professional. During the CIRP, the RP filed progress reports, and the COC met multiple times. The COC consented to re-publication of Form G and recommended an extension for receiving Expressions of Interest. The admitted claims of the Financial Creditor (Corporation Bank) amounted to Rs. 1,10,72,14,831.70, and the admitted claims of the Operational Creditors amounted to Rs. 1,29,01,378. The RP received valuation reports and a forensic audit report. The CIRP cost till date was Rs. 15,15,943.60. No viable

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of a viable resolution plan …

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

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**Reasoning:** The NCLT observed that no viable resolution plan was received within the statutory period

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**Interpretation:** Section 33(2) provides the legal basis for liquidation when resolution efforts

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**Application:** Since no resolution plan was received and the COC recommended liquidation,

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** M/S. BANSAL…

## Timeline

- **2019-08-13 — CIRP Init…**: Application admitted, and Mr. Pinaki Sircar…
- **2019-11-26 — 4th COC M…**: Resolution Professional and…

## 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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