# In the matter of Bhagat Ram Motor Ways Pvt. Ltd. CA No.750-2019 In CP (IB) No. 130-Chd-HP-2018

> NCLT judgment dated 2019-09-24. Citation: TCN-2019-NCLT-01290. The Resolution Professional (RP) filed an application under Section 33(2) of the Insolvency &…

- **Court:** NCLT
- **Order date:** 24 Sept 2019
- **Citation:** TCN-2019-NCLT-01290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhagat-ram-motor-ways-pvt-ltd-ca-no750-2019-in-cp-ib-no-130-chd-hp-2018-515fa615

## Summary

### Background

The Resolution Professional (RP) filed an application under Section 33(2) of the Insolvency & Bankruptcy Code, 2016, seeking an order for the liquidation of Bhagat Ram Motorways Pvt. Ltd. The petition by the corporate debtor was admitted on 2018-12-10, and a moratorium was declared. Arvind Kumar was appointed as Interim Resolution Professional and later as RP. The CoC rejected the resolution plan submitted by Ms. Indu Walia with 93.86% votes. The CoC, in its 10th meeting, passed a resolution with 93.86% votes authorizing the RP to file an application with the Adjudicating Authority (AA) for the liquidation of the corporate debtor.

## Facts

Bhagat Ram Motorways Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) after a petition filed under Section 10 of the Insolvency and Bankruptcy Code (IBC) was admitted on 2018-12-10. Arvind Kumar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). During the CIRP, a resolution plan submitted by Ms. Indu Walia was considered by the Committee of Creditors (CoC) but was ultimately rejected due to dissatisfaction with the sources of funds and the proposed timeline. The CoC, in its 10th meeting held on 2019-08-13, voted with 93.86% majority to liquidate the corporate debtor. The RP then filed an application under Section 33(2) of the IBC seeking liquidation. The Adjudicating Authority (AA)

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## Issues and analysis

### Issue 1: Whether the conditions under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, are …

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

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**Reasoning:** The Adjudicating Authority observed that the application was filed by the RP during the

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**Interpretation:** Section 33(2) provides a mechanism for the CoC to decide on liquidation if a

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**Application:** In this case, the CoC's decision, supported by 93.86% votes, satisfied the

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Arvind…
- **Respondents:** Bhagat Ram…

## Timeline

- **2018-12-10 — Petition Ad…**: Petition filed by the corporate debtor under Section 10 of the Code was admitted, and…
- **2019-01-01 — RP Appoin…**: Arvind Kumar was appointed as Resolution…

## 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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