# In the matter of Danke Electricals Ltd. IA 78-2019 in C.P. (IB) No. 152-NCLT-AHM-2018

> NCLT judgment dated 2019-06-12. Citation: TCN-2019-NCLT-02949. The case involves an application filed by the Resolution Professional (RP) seeking an order for…

- **Court:** NCLT
- **Order date:** 12 Jun 2019
- **Citation:** TCN-2019-NCLT-02949
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/danke-electricals-ltd-ia-78-2019-in-cp-ib-no-152-nclt-ahm-2018-51b5a7db

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking an order for the liquidation of Danke Electricals Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by M/s Sai Products, an Operational Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Committee of Creditors (CoC) resolved to close the CIRP process and instructed the RP to file an application for liquidation, as no resolution plan was received. The Adjudicating Authority is considering the application for liquidation.

## Facts

M/s Sai Products, an Operational Creditor, filed a petition under Section 7 of the IBC, leading to the initiation of CIRP for Danke Electricals Ltd. The CIRP commenced with the appointment of an Interim Resolution Professional (IRP). During its 5th meeting on 2018-12-10, the CoC resolved to close the CIRP process because no Expression of Interest (EOI) or resolution plan was received. The CoC instructed the RP to file an application for liquidation with the Adjudicating Authority. The RP then filed an application under Sections 33(1), 33(2), and 34(1) of the IBC seeking a liquidation order. The CIRP was closed on 2019-01-22. The instant application was filed on 2019-01-18.

## Issues and analysis

### Issue 1: Whether the application for liquidation under Sections 33(1), 33(2), and 34(1) of the IBC should be …

**Ratio:** Section 33 of the IBC allows for the initiation of liquidation proceedings when the CIRP

…

**Reasoning:** The Adjudicating Authority considered the fact that the CoC had resolved to close the

…

**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CIRP fails,

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**Application:** Since the CoC resolved to close the CIRP and no resolution plan was received,

…

## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Karan San…
- **Respondents:** Danke Electricals…

## Timeline

- **2018-07-27 — CIRP Init…**: CIRP commenced based on a petition filed by M/s…
- **2018-12-10 — CoC Resol…**: CoC resolved to close the CIRP process and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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