# In the matter of Bholanath Ingots Pvt. Ltd. CA(IB) 54-KB-2020 in CA (IB) No. 436-KB-2019

> NCLT judgment dated 2020-02-24. Citation: TCN-2020-NCLT-01834. The case pertains to an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 24 Feb 2020
- **Citation:** TCN-2020-NCLT-01834
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bholanath-ingots-pvt-ltd-caib-54-kb-2020-in-ca-ib-no-436-kb-2019-9f0606fe

## Summary

### Background

The case pertains to an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application was filed by Jai Balaji Industries Limited, the operational creditor, against Bholanath Ingots Private Limited, the corporate debtor, for default in payment of an operational debt amounting to Rs. 6,85,00,000/-.

## Facts

Jai Balaji Industries Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bholanath Ingots Private Limited for defaulting on an operational debt of Rs. 6,85,00,000/-. The corporate debtor, Bholanath Ingots Private Limited, was admitted into CIRP on August 7, 2019. Mr. Rakesh Kumar Agarwal was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and invited claims from creditors. Claims were received from six financial creditors and some operational creditors. A Committee of Creditors (CoC) was formed. The IRP collected financial papers, assessed assets and liabilities, and prepared an Information Memorandum. Despite efforts, no resolution plan was received within the 180-day CIRP

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Bholanath Ingots Private Limited, should be liquidated due to the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (I&B Code) allows the

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**Reasoning:** The court reasoned that the CIRP period of 180 days had already completed, and no

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**Interpretation:** Section 33(1) of the I&B Code is interpreted to mean that if the CIRP

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**Application:** The court applied Section 33(1) to the facts of the case, noting that the CIRP

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Jai Balaji…
- **Respondents:** Bholanath Ingots…

## Timeline

- **2019-08-07 — Admission in…**: Bholanath Ingots Private Limited was admitted…
- **2019-08-09 — Public Announcement of…**: The IRP made a public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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