# In the matter of DLS Industries Private Limited C.P. No. 723-I&BP-2017

> NCLT judgment dated 2018-02-27. Citation: TCN-2018-NCLT-01770. The CIRP process was initiated against DLS Industries Private Limited, the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 27 Feb 2018
- **Citation:** TCN-2018-NCLT-01770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dls-industries-private-limited-cp-no-723-ibp-2017-187100fc

## Summary

### Background

The CIRP process was initiated against DLS Industries Private Limited, the Corporate Debtor, following an order by the Adjudicating Authority on May 3, 2017, based on a Section 7 petition filed by the Financial Creditor, Punjab National Bank (PNB). Dushyant C. Dave was appointed as the Insolvency Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC) during their first meeting on June 14, 2017. The RP issued a public announcement inviting claims from creditors and appointed two valuers to assess the company's properties. Due to a significant difference in their valuations, a third valuer was appointed, and the valuation reports were subsequently submitted to the CoC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against DLS Industries Private Limited based on a Section 7 petition filed by Punjab National Bank (PNB), a financial creditor. The Adjudicating Authority issued an order on May 3, 2017, to commence the CIRP. Dushyant C. Dave was appointed as the Insolvency Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). The RP issued a public announcement inviting claims from creditors and appointed two valuers to assess the company's assets. A third valuer was appointed due to discrepancies in the initial valuations. The RP prepared an Information Memorandum and presented it to the CoC. In the third CoC meeting on October 5, 2017, PNB, holding

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, DLS Industries Private Limited, should be liquidated due to the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of a

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**Reasoning:** The court reasoned that the statutory period of 180 days for submitting a resolution plan

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**Interpretation:** Section 33(1) of the IBC mandates liquidation when no resolution plan is

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**Application:** Since no resolution plan was submitted within the 180-day period, and the RP

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Dushyant…
- **Respondents:** DLS Industries…; None Pr…

## Timeline

- **2017-05-03 — CIRP Init…**: The CIRP process was initiated against the Corporate Debtor by an order of the…
- **2017-06-14 — RP Appoin…**: Dushyant C. Dave was appointed as Insolvency Resolution Professional and confirmed by the…

## 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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