# In the matter of Coastal Energy Private Limited IA-81 & 318-CHE-2021 in IBA-624-2019

> NCLT judgment dated 2021-08-27. Citation: TCN-2021-NCLT-01270. The case involves an application (IA/81/CHE/2021) filed by the Resolution Professional of…

- **Court:** NCLT
- **Order date:** 27 Aug 2021
- **Citation:** TCN-2021-NCLT-01270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coastal-energy-private-limited-ia-81-318-che-2021-in-iba-624-2019-15a4f001

## Summary

### Background

The case involves an application (IA/81/CHE/2021) filed by the Resolution Professional of Coastal Energy Private Limited under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period. Another application (IA/318/CHE/2021) was filed under Section 33(2) of the IBC, 2016, seeking an order for the liquidation of the Corporate Debtor. The CIRP was initiated following a Section 7 application filed by a Financial Creditor, and Mr. S. Rajagopal was initially appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement under Section 15 of the IBC, and claims totaling Rs.1679 Crore were received, with Rs.971 Crore admitted. The Committee of Creditors (CoC) was

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Coastal Energy Private Limited following a Section 7 application filed by a Financial Creditor. Mr. S. Rajagopal was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement inviting claims. Claims totaling Rs.1679 Crore were received, with Rs.971 Crore admitted. A Committee of Creditors (CoC) was constituted. Ramakrishnan Sadasivan was appointed as the Resolution Professional. The CoC attempted to find a resolution applicant by issuing multiple Expressions of Interest (EoIs), but none were successful. One prospective Resolution Applicant, M/s. RKG Fund, submitted an Expression of Interest but did not meet the eligibility criteria. The CoC, in its 13th

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## Issues and analysis

### Issue 1: Whether the application for extension of the CIRP period (IA/81/CHE/2021) is maintainable given the …

**Ratio:** When the Committee of Creditors (CoC) has already passed a resolution for the liquidation

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**Reasoning:** The Tribunal reasoned that the primary objective of the CIRP is to find a resolution for

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**Interpretation:** This interpretation clarifies that the CoC's decision to liquidate the

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**Application:** In this case, the CoC had already passed a resolution for the liquidation of

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Ramakrishnan…
- **Respondents:** Coastal Energen…
- **Advocates:** B. Dhan…

## Timeline

- **2020-01-06 — CIRP Init…**: Tribunal passed order in IBA/624/2019 initiating Corporate Insolvency Resolution Process…
- **2020-01-08 — Public Annou…**: Public announcement in Form-A was made in…

## Legal provisions

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

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