# In the matter of Castex Technologies Limited CA Nos.364 & 592-2018 In CP (IB) No.116-Chd-Hry-2017

> NCLT judgment dated 2019-03-15. Citation: TCN-2019-NCLT-04404. The case involves two applications, CA Nos.364/2018 and 592/2018, being disposed of by a common…

- **Court:** NCLT
- **Order date:** 15 Mar 2019
- **Citation:** TCN-2019-NCLT-04404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/castex-technologies-limited-ca-nos364-592-2018-in-cp-ib-no116-chd-hry-2017-c83a3c80

## Summary

### Background

The case involves two applications, CA Nos.364/2018 and 592/2018, being disposed of by a common order due to their similar background. CA No.364/2018 was filed by the Resolution Professional under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the resolution plan submitted by Liberty House Group PTE Limited (LHG) as approved by the Committee of Creditors (CoC). CA No.592/2018 was filed by State Bank of India on behalf of the CoC of Castex Technologies Limited, seeking permission to withdraw CA No.364/2018 and exclude the time spent negotiating with LHG from the corporate insolvency resolution process period. The corporate insolvency resolution process was initiated against Castex Technologies Limited based on an application filed by

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## Facts

State Bank of India filed CP (IB) No.116/Chd/Hry/2017 against Castex Technologies Limited, which was admitted on 20.12.2017. Mr. Dinkar T. Venkatasubramanian was appointed as the Interim Resolution Professional. After inviting Expression of Interest (EOI), 17 potential resolution applicants responded. The CoC approved a process note on 01.02.2018. Binding financial offers were received from Deccan Value Investors L.P. (DVI) and Liberty House Group PTE Limited (LHG). LHG was selected as the preferred bidder. The CoC and LHG agreed to a draft Letter of Intent (LOI) dated 30.08.2018. LHG was required to submit a performance guarantee within 10 business days of the LOI. LHG failed to furnish the performance guarantee of ₹100 crores. State Bank of India filed CA No.592 of

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CA No.364/2018 filed by the Resolution Professional for …

**Ratio:** The court relied on the principle that the CoC has the right to withdraw an application

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**Reasoning:** The court reasoned that LHG failed to furnish the performance bank guarantee as required

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**Interpretation:** The court interpreted the relevant provisions of the Insolvency and Bankruptcy

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**Application:** The court applied the ratio to the facts of the case, noting that LHG's failure

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** State Bank of…
- **Respondents:** Castex Technologie…

## Timeline

- **2017-12-20 — Admission of CP (IB)…**: The Tribunal admitted the application filed by State Bank of India against Castex…
- **2017-12-22 — Appointment of Interim…**: Mr. Dinkar T. Venkatasubramanian was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30 — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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