# In the matter of Brimson Cables Pvt. Ltd. (IB)-516(ND)2019

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01181. The Corporate Insolvency Resolution (CIR) process was initiated by the Operational Creditor and…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01181
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brimson-cables-pvt-ltd-ib-516nd2019-295d3035

## Summary

### Background

The Corporate Insolvency Resolution (CIR) process was initiated by the Operational Creditor and admitted by the court on April 30, 2019. The Operational Creditor initially contributed Rs. 1 lakh to facilitate the CIR process, but no further contributions were made. Certain claims were received, but none of the claimants were willing to share the CIR costs. Despite court notices, neither the Operational Creditor nor their counsel appeared before the court.

## Facts

The CIR process was initiated by the Operational Creditor and admitted on April 30, 2019. The Operational Creditor contributed Rs. 1 lakh initially. No further contributions were made. Certain claims were received, but none of the claimants were willing to share the CIR costs. Despite court notices, neither the Operational Creditor nor their counsel appeared. There are no business or assets of the Corporate Debtor, as submitted by the counsel for the Ex-Director. The Operational Creditor's initial contribution of Rs. 1 lakh is relevant because it shows an initial commitment to the CIR process. The lack of further contributions and the unwillingness of other claimants to share costs indicates a lack of financial support for the process. The absence of the Operational

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## Issues and analysis

### Issue 1: Whether the CIR process can continue without …

**Ratio:** The CIR process requires sufficient funds and assets to proceed effectively. Without

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**Reasoning:** The court reasoned that the IRP cannot be expected to proceed without funds, and the

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**Interpretation:** This highlights the necessity of financial viability for the CIR process to be

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**Application:** In this case, the absence of funds and assets made it impossible for the IRP to

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## Parties

- **Judges:** Saroj Ra…; Ina Mal…
- **Respondents:** M/s. Brimson…; M/s. Jai Durga…

## Timeline

- **2019-04-30 — CIR Process A…**: The CIR process was admitted vide…
- **2019-09-30 — Hearing…**: Hearing before the New Delhi Bench of…

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