# In the matter of Bunt Solar India Pvt. Ltd. I.A. No.2-2020 and C.P. (IB) No. 72-BB-2019

> NCLT judgment dated 2021-01-06. Citation: TCN-2021-NCLT-03385. The case involves I.A.No.2/2020 filed in C.P.(IB)No.72/BB/2019 by the liquidator of M/s. Bunt…

- **Court:** NCLT
- **Order date:** 6 Jan 2021
- **Citation:** TCN-2021-NCLT-03385
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bunt-solar-india-pvt-ltd-ia-no2-2020-and-cp-ib-no-72-bb-2019-1ac5f3e3

## Summary

### Background

The case involves I.A.No.2/2020 filed in C.P.(IB)No.72/BB/2019 by the liquidator of M/s. Bunt Solar India Pvt. Ltd., seeking directions to the Financial Creditor, Karnataka Bank Limited, to realize the third-party guarantee and remit the CIRP/Liquidation Cost. The liquidator also sought directions to M/s. Bharat Co-op Bank (Mumbai) Ltd., to foreclose fixed deposits. The Corporate Debtor was initially admitted into CIRP based on a petition filed by M/s. Rashmika Info Technologies Pvt. Ltd. under Section 9 of IBC, and subsequently placed under liquidation. The liquidator made public announcements regarding the liquidation. The liquidation value was reported as Nil, and the amounts realized from banks were insufficient to cover the liquidation process cost.

## Facts

M/s. Bunt Solar India Pvt. Ltd. was undergoing liquidation. The liquidator, Gorur Narasimhamurthy Venkataraman, filed an application (I.A.No.2/2020) seeking directions to Karnataka Bank Limited (Financial Creditor) to realize a third-party guarantee and remit funds for liquidation costs. The liquidator also sought to foreclose fixed deposits held with Bharat Co-op Bank (Mumbai) Ltd. The initial Corporate Insolvency Resolution Process (CIRP) was initiated by M/s. Rashmika Info Technologies Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor was placed under liquidation following an order in I.A No.408/2019. Public announcements were made regarding the liquidation. The liquidation value was reported as Nil. Karnataka Bank Limited

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor is obligated to contribute towards CIRP/Liquidation Cost before …

**Ratio:** Section 52(8) of IBC, 2016 states that the Financial Creditor has to contribute towards

…

**Reasoning:** The Financial Creditor argued that they are realizing security interest through SARFAESI

…

**Interpretation:** Section 52(8) of the IBC mandates financial creditors to contribute towards

…

**Application:** The Financial Creditor's argument was noted, but the court did not make a

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Gorur Narasimhamur…
- **Respondents:** M/s. Bunt Solar…; Karnataka Bank…

## Timeline

- **2019-06-14 — Order by Adjudicating…**: The Adjudicating Authority admitted the Company Petition bearing C.P.(IB)No.72/BB/2019,…
- **2019-09-05 — Liquidation…**: The Corporate Debtor was placed under Liquidation vide an Order dated 05.09.2019 passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/bunt-solar-india-pvt-ltd-ia-no2-2020-and-cp-ib-no-72-bb-2019-1ac5f3e3