# In the matter of Earth Iconic Infrastructure Pvt. Ltd. (IB)-16(PB)-2017

> NCLT judgment dated 2020-01-10. Citation: TCN-2020-NCLT-02396. The case involves an application for liquidation of the corporate debtor, Earth Iconoic…

- **Court:** NCLT
- **Order date:** 10 Jan 2020
- **Citation:** TCN-2020-NCLT-02396
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/earth-iconic-infrastructure-pvt-ltd-ib-16pb-2017-025d2f8a

## Summary

### Background

The case involves an application for liquidation of the corporate debtor, Earth Iconoic Infrastructures Pvt. Ltd., based on a resolution passed by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016. Initially, an Interim Resolution Professional (IRP) was appointed, followed by the constitution of the CoC. The IRP was later confirmed as the Resolution Professional (RP). Several invitations for Expression of Interest (EOI) were issued, but resolution plans were rejected by the CoC. Despite multiple opportunities, a resolution applicant, Unicorn Buildtech & associates, failed to submit a viable plan, leading the CoC to recommend liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Earth Iconoic Infrastructures Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Yogesh Gupta was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Mr. Harish Chander Manchanda as the Resolution Professional (RP). The IRP issued a public announcement inviting claims from creditors, receiving 732 claims amounting to 172 crores. The CoC was constituted on 22.05.2018. The RP appointed two valuers, and the liquidation value of the company was determined to be Rs. 57.67 crores. Several attempts were made to find a resolution plan, with invitations for Expression of Interest (EOI) issued on 12.10.2018, 11.11.2018, 11.01.2019, and 05.06.2019.

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## Issues and analysis

### Issue 1: Whether the CoC was justified in recommending liquidation of the corporate debtor after multiple …

**Ratio:** The CoC has the right to apply its commercial wisdom to the plans and recommendation for

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**Reasoning:** The court reasoned that the CoC considered the resolution plans in the past and decided

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**Interpretation:** The interpretation is that the CoC has the authority to decide on the

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**Application:** The CoC's decision to recommend liquidation was applied to the facts of the

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## Parties

- **Judges:** B.S.V. Prakash…; SH. S. K.…
- **Appellants:** Anil Mahi…
- **Respondents:** Earth Iconoic…
- **Advocates:** Rakesh…; Rohit B…; +1 more

## Timeline

- **2018-04-20 — CP Admit…**: CP was admitted and Mr. Yogesh…
- **2018-05-22 — CoC Consti…**: The Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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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/earth-iconic-infrastructure-pvt-ltd-ib-16pb-2017-025d2f8a