# In the matter of Deepak Pneumatics Pvt. Ltd. IB)-616(ND)2018

> NCLT judgment dated 2019-04-09. Citation: TCN-2019-NCLT-04041. The case involves a Corporate Debtor who filed a petition under Section 10 of the IBC.…

- **Court:** NCLT
- **Order date:** 9 Apr 2019
- **Citation:** TCN-2019-NCLT-04041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-pneumatics-pvt-ltd-ib-616nd2018-897a6d56

## Summary

### Background

The case involves a Corporate Debtor who filed a petition under Section 10 of the IBC. Following the invitation of claims, only a few workmen submitted their claims to form the Committee of Creditors (COC) and opposed the resolution process. No party is willing to bear the cost of the resolution process due to the company's lack of assets. The Corporate Debtor's business collapsed due to the factory's closure two decades prior. No assets are available for liquidation, and no resolution plan can be invited.

## Facts

The Corporate Debtor filed a petition under Section 10 of the IBC. Only a few workmen submitted claims, opposing the resolution process. No party is willing to bear the resolution process costs due to the company's lack of assets. The business collapsed two decades ago, and no assets are available for liquidation. The COC is defunct and lacks funds to cover IRP fees. The 180-day resolution period has expired without confirmation of the IRP as RP. The IRP and Corporate Debtor's counsel requested an adjournment. These facts highlight the insolvency and inability to proceed with the resolution process, leading to the likely liquidation of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether a resolution process can proceed when the Corporate Debtor lacks assets and no party is …

**Ratio:** The resolution process under the IBC requires financial viability and the willingness of

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**Reasoning:** The court reasoned that without assets or financial backing, the resolution process

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**Interpretation:** This issue highlights the importance of financial viability in initiating and

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**Application:** In this case, the Corporate Debtor's lack of assets and the unwillingness of

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** Mukesh Su…
- **Respondents:** Deepak Pneumatics…

## Timeline

- **2019-04-09 — Hearing…**: Hearing before the New Delhi Bench of…
- **N/A — Factory C…**: The Corporate Debtor's factory closed approximately two decades ago, leading to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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