# In the matter of Electra Accumulators Ltd. IA-113(AHM)-2021 in CP(IB) 188 of 2019

> NCLT judgment dated 2021-04-12. Citation: TCN-2021-NCLT-02408. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 12 Apr 2021
- **Citation:** TCN-2021-NCLT-02408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/electra-accumulators-ltd-ia-113ahm-2021-in-cpib-188-of-2019-71cb1775

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor, Electra Accumulators Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and Mr. Ritesh Prakash Adatiya was appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Mahesh Chand Gupta as the Resolution Professional (RP). The Committee of Creditors (COC) rejected the resolution plan proposed by the RP in its 13th meeting held on 14.12.2020 and resolved to liquidate the Corporate Debtor as a going concern, authorizing the RP to file an application under Section 33 of the IBC before the Adjudicating Authority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Electra Accumulators Ltd., with C.P. (I.B) No. 188/2019 being admitted on 16.09.2019. Initially, Mr. Ritesh Prakash Adatiya was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Mahesh Chand Gupta replaced him as the Resolution Professional (RP) via an order dated 29.05.2020. The Committee of Creditors (COC) convened its 13th meeting on 14.12.2020, where they rejected the Resolution Plan proposed by the RP. Consequently, the COC resolved to liquidate the Corporate Debtor as a going concern and authorized the RP to file an application under Section 33 of the Insolvency and Bankruptcy Code (IBC) before the Adjudicating Authority. Despite being notified, the suspended

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the liquidation of the Corporate Debtor based on …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) is paramount and cannot be

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**Reasoning:** The Hon'ble Supreme Court has affirmed that neither the Adjudicating Authority nor the

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**Interpretation:** This principle emphasizes the autonomy of the COC in making decisions regarding

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**Application:** In this case, the COC rejected the resolution plan and resolved to liquidate

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Mahesh Chan…
- **Respondents:** Electra Accumulato…; Committee of…

## Timeline

- **2019-09-16 — Admission o…**: C.P. (I.B) No. 188/2019 was admitted, initiating the Corporate Insolvency Resolution…
- **2020-05-29 — Appointment…**: Mr. Mahesh Chand Gupta was appointed as the Resolution Professional (RP), replacing the…

## Legal provisions

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

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