# In the matter of Coastal Projects Ltd. I.A. (IB) No. 72-CTB-2020 Connected with CP (IB) No. 593-KB-2017

> NCLT judgment dated 2021-03-02. Citation: TCN-2021-NCLT-02857. The case involves an application filed by the Liquidator of Coastal Projects Ltd. seeking…

- **Court:** NCLT
- **Order date:** 2 Mar 2021
- **Citation:** TCN-2021-NCLT-02857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coastal-projects-ltd-ia-ib-no-72-ctb-2020-connected-with-cp-ib-no-593-kb-2017-89d41aa7

## Summary

### Background

The case involves an application filed by the Liquidator of Coastal Projects Ltd. seeking permission from the National Company Law Tribunal (NCLT) to continue legal proceedings against National Projects Construction Corporation Ltd. (NPCC) before the Gauhati High Court. The Liquidator had already filed writ petitions in the High Court without obtaining prior approval from the NCLT, citing urgency and the threat of financial loss due to the invocation of bank guarantees. The application is filed under Section 33(5) and 60(5) of the Insolvency and Bankruptcy Code, 2016, and Rule 11 of the National Company Law Tribunal Rules, 2016.

## Facts

1. Coastal Projects Ltd. is undergoing liquidation, and Mr. Ravi Shankar Devarakonda is the Liquidator.
2. The Liquidator filed an application seeking permission to continue writ petitions (WP(C) 1958/2020, WP(C) 2056/2020, WP(C) 2057/2020, WP(C) 2060/2020) before the Gauhati High Court against National Projects Construction Corporation Ltd. (NPCC).
3. The Liquidator initiated these writ petitions without obtaining prior approval from the NCLT.
4. The Liquidator claims that the urgency and the threat of financial loss due to the invocation of bank guarantees necessitated the immediate filing of the writ petitions.
5. Section 33(5) of the Insolvency and Bankruptcy Code, 2016, requires prior approval from the Adjudicating Authority before instituting any legal proceeding on

…

## Issues and analysis

### Issue 1: Whether the Liquidator can be granted permission to continue legal proceedings against NPCC, given …

**Ratio:** Section 33(5) of the Insolvency and Bankruptcy Code, 2016 stipulates that after a

…

**Reasoning:** The NCLT acknowledges the Liquidator's explanation for not obtaining prior approval,

…

**Interpretation:** Section 33(5) is interpreted to mean that prior approval is generally required

…

**Application:** In this specific case, the NCLT, considering the Liquidator's explanation and

…

## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** Ravi Shankar…
- **Respondents:** Coastal Projects…; National Projects…

## Timeline

- **2020-01-16 — Previous…**: An ex post facto prayer was passed for the Liquidator in Misc. A. No. 60/CTB/2019…
- **2021-03-02 — Order Da…**: Date of pronouncement of the order allowing the Liquidator's application to continue…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(5) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

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/coastal-projects-ltd-ia-ib-no-72-ctb-2020-connected-with-cp-ib-no-593-kb-2017-89d41aa7