# In the matter of Divine Vidyut Limited IA No.1365-KB-2020 in CP (IB) No. 891-KB-2018

> NCLT judgment dated 2021-02-26. Citation: TCN-2021-NCLT-02907. The case pertains to an application filed by the Resolution Professional (RP) of Divine Vidyut…

- **Court:** NCLT
- **Order date:** 26 Feb 2021
- **Citation:** TCN-2021-NCLT-02907
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/divine-vidyut-limited-ia-no1365-kb-2020-in-cp-ib-no-891-kb-2018-c38f7108

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Divine Vidyut Limited seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Divine Vidyut Limited based on a petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. Despite several extensions, no resolution plan was received for the Corporate Debtor. The Committee of Creditors (CoC) approved the liquidation of the Corporate Debtor with a 100% voting share.

## Facts

Punjab National Bank, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Divine Vidyut Limited. The Adjudicating Authority admitted the petition on 19/09/2019. Rajesh Kumar Agrawal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcement was made on 22/09/2019. The Committee of Creditors (CoC) was constituted on 10/10/2019. Invitation for Expression of Interest (EoI) was published thrice. Three EoIs were received, but no resolution plan was submitted despite extending the deadline multiple times. The CIRP period was extended by 90 days due to the COVID-19 pandemic. The CoC, in its 15th meeting held on 02/12/2020, recommended liquidation with 100% voting

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Divine Vidyut Limited, should be …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, read with sub-section (1)

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**Reasoning:** The Adjudicating Authority reasoned that since no resolution plan was received despite

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**Interpretation:** The legal issue revolves around the interpretation of Section 33(2) of the IBC,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Rajesh Kumar…
- **Respondents:** Divine Vidyut…; Punjab National…

## Timeline

- **2019-09-19 — Initiation…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2019-09-22 — Public Annou…**: Public announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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