# In the matter of Biotor Industries Ltd. MA 1525-2018 In C.P.-(IB)1514(MB)-2017

> NCLT judgment dated 2018-12-31. Citation: TCN-2018-NCLT-00003. The case involves an application for the liquidation of Biotor Industries Ltd. under Section…

- **Court:** NCLT
- **Order date:** 31 Dec 2018
- **Citation:** TCN-2018-NCLT-00003
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/biotor-industries-ltd-ma-1525-2018-in-cp-ib1514mb-2017-1a6d0c18

## Summary

### Background

The case involves an application for the liquidation of Biotor Industries Ltd. under Section 33(1)&(2) of the Insolvency and Bankruptcy Code (IBC), 2016. Allahabad Bank, the Financial Creditor, initiated the insolvency proceedings. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made to invite claims from creditors. The Committee of Creditors (CoC) was formed, and they eventually recommended liquidation due to the company's defunct operations and attachment of assets by various authorities. The Resolution Professional (RP) filed an application seeking approval for the liquidation order.

## Facts

Allahabad Bank initiated insolvency proceedings against Biotor Industries Ltd. under Section 7 of the IBC. The petition was admitted on 2018-01-01. Sanjay Kumar Agarwal was appointed as the Interim Resolution Professional (IRP). Public announcements were made, and claims were invited from creditors. The Committee of Creditors (CoC) was formed, comprising financial creditors. The RP received claims of nearly ₹30,000 crores. The Corporate Debtor's operations had been closed for over 8 years, and most of its assets were attached by various authorities. Two registered valuers were appointed to determine the liquidation value. The average liquidation value was determined to be ₹279.57 crores, and the market value was ₹376.66 crores. Despite extending the deadline, only one

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## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, Biotor Industries Ltd., should be approved under …

**Ratio:** Section 33(1)&(2) of the IBC, 2016, allows for the initiation of liquidation

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**Reasoning:** The CoC approved the resolution for liquidation with 86.67% of the vote share, indicating

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**Interpretation:** Section 33(1)&(2) of the IBC provides a mechanism for liquidation when

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**Application:** In this case, the CoC's approval with 86.67% voting share, coupled with the

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Allahabad…
- **Respondents:** Biotor Industries…; Nikhil R…

## Timeline

- **2018-01-01 — Admission of…**: The petition filed by Allahabad Bank against Biotor Industries Ltd. was admitted by the…
- **2018-01-13 — Public Annou…**: The Interim Resolution Professional (IRP) issued a public announcement inviting claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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