# In the matter of Cethar Limited CP-511-IB-CB-2017

> NCLT judgment dated 2018-04-25. Citation: TCN-2018-NCLT-01499. The case involves MA/32/IB/2018 in CP/511/IB/CB/2017 filed by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 25 Apr 2018
- **Citation:** TCN-2018-NCLT-01499
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cethar-limited-cp-511-ib-cb-2017-68b469e6

## Summary

### Background

The case involves MA/32/IB/2018 in CP/511/IB/CB/2017 filed by the Resolution Professional, Mr. V. Nagarajan, under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, for liquidation of the assets of the Corporate Debtor, M/s. Cethar Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2017-06-16. CP/511/IB/CB/2017 was filed under Section 9 of the I&B Code, 2016 by the Operational Creditor, M/s. Lloyd Insulations India Limited, which was admitted by the Bench on 2017-06-16. The Resolution Professional made advertisements seeking 'expression of interest' for giving a Resolution Plan, but the received interests were below the value expected by the CoCs. The CoCs decided not to take up the same for the purpose of Resolution Plan.

## Facts

M/s. Lloyd Insulations India Limited filed CP/511/IB/CB/2017 under Section 9 of the I&B Code, 2016, as an Operational Creditor against M/s. Cethar Limited, the Corporate Debtor. The CIRP was initiated on 2017-06-16. Mr. V. Nagarajan was appointed as Interim Resolution Professional (IRP). The Resolution Professional sought 'expression of interest' for a Resolution Plan, but the received interests were below expectations. The CoCs held meetings on 2018-04-16 and 2018-04-21 but did not consider the same for a Resolution Plan. The Resolution Professional stated that the Corporate Debtor's assets were primarily land and building, not machinery, and were not located in attractive areas. The machinery was specialized and not operated for 4-5 years. The assets were

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Cethar Limited, should be liquidated due to the failure to …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016, stipulates that if no resolution plan is

…

**Reasoning:** The Adjudicating Authority noted that no Resolution Plan was approved by the CoCs under

…

**Interpretation:** Section 33(1)(a) mandates liquidation when the CIRP fails to produce a

…

**Application:** Given that no resolution plan was approved by the CoCs within the CIRP period,

…

## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Respondents:** M/s Cethar…

## Timeline

- **2017-06-16 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2018-04-16 — CoC Meet…**: 10th CoC Meeti…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/cethar-limited-cp-511-ib-cb-2017-68b469e6