# In the matter of Bhatia Global Trading Limited IA 89 of 2018 in TP 162 of 2019 in CP(IB)No. 18 of 2017

> NCLT judgment dated 2020-06-09. Citation: TCN-2020-NCLT-01208. The case involves an application (I.A. No. 89 of 2018) filed under Sections 33 and 34 of the…

- **Court:** NCLT
- **Order date:** 9 Jun 2020
- **Citation:** TCN-2020-NCLT-01208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhatia-global-trading-limited-ia-89-of-2018-in-tp-162-of-2019-in-cpibno-18-of-20-a62cd635

## Summary

### Background

The case involves an application (I.A. No. 89 of 2018) filed under Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional, Mr. Nitin Hasmukhlal Parikh, seeking liquidation of the Corporate Debtor, Bhatia Global Trading Limited. The Financial Creditor had initiated Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Code, and an admission order was passed on 23.05.2017, declaring a moratorium and appointing Mr. Parikh as Interim Resolution Professional. The CoC was formed, and Mr. Parikh was appointed as the Resolution Professional. Despite efforts, no resolution plan could be accepted, leading to the liquidation application.

## Facts

The Financial Creditor initiated Corporate Insolvency Resolution Process (CIRP) against Bhatia Global Trading Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), and the application was admitted on 2017-05-23. Nitin Hasmukhlal Parikh was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed. The initial period of 180 days for CIRP was extended. Despite inviting expressions of interest, only one resolution plan was received, which was subsequently rejected by the CoC on 2018-02-07. The CoC then recommended liquidation on 2018-02-26. Vitol S.A., a creditor, raised objections regarding the RP's handling of their claim of Rs. 532.91 crores, alleging

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Bhatia Global Trading Limited, …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The CoC, with a 100% majority, recommended liquidation after failing to approve any

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**Interpretation:** The court interpreted Sections 33 and 34 to mean that if no resolution plan is

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**Application:** Since no resolution plan was approved, and the CoC recommended liquidation, the

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Nitin Hasmukhlal…
- **Respondents:** Bhatia Global…; IDBI Bank L…

## Timeline

- **2017-05-23 — Admission…**: Adjudicating Authority passed an admission…
- **2017-05-23 — Moratorium D…**: Moratorium was declared…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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