# In the matter of EMCO Limited IA No. 203-MB-2021 in C.P. (IB) No. 2849-MB-2018

> NCLT judgment dated 2021-08-09. Citation: TCN-2021-NCLT-01409. The case involves an application filed by the Resolution Professional (RP), Mr. Sundaresh Bhat,…

- **Court:** NCLT
- **Order date:** 9 Aug 2021
- **Citation:** TCN-2021-NCLT-01409
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emco-limited-ia-no-203-mb-2021-in-cp-ib-no-2849-mb-2018-72d2182e

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP), Mr. Sundaresh Bhat, seeking liquidation of EMCO Limited (Corporate Debtor). The Committee of Creditors (CoC) unanimously decided to initiate liquidation proceedings as no resolution plan was approved. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by Jet Roadlines (India) Private Limited, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Mr. Kedar Ramratan Laddha was initially appointed as the Interim Resolution Professional (IRP), but was later replaced by Mr. Sundaresh Bhat by the CoC.

## Facts

Jet Roadlines (India) Private Limited, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against EMCO Limited (Corporate Debtor). The petition was admitted on 2019-07-22, initiating the Corporate Insolvency Resolution Process (CIRP). Initially, Mr. Kedar Ramratan Laddha was appointed as the Interim Resolution Professional (IRP), but he was later replaced by Mr. Sundaresh Bhat by the Committee of Creditors (CoC). The CoC attempted to attract resolution plans by issuing amended RFRPs and extending deadlines, with the last date for submission being 2020-01-27. Two resolution plans were received from Augusta Ventures (Consortium) and Fefex Industries Limited, but the CoC found them commercially unattractive. Subsequent

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional seeking liquidation of the Corporate …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code allows the Adjudicating Authority

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**Reasoning:** The court reasoned that the CIRP period had expired, and no resolution plan had been

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**Interpretation:** Section 33(1)(a) provides a clear legal basis for initiating liquidation

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**Application:** The court applied this ratio to the facts by noting that the CIRP period had

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Sundaresh…
- **Respondents:** EMCO Li…; M/s. EMCO L…

## Timeline

- **2018-01-01 — C.P (IB) No. 2849/MB/201…**: Corporate Insolvency Resolution…
- **2019-07-22 — Admission of…**: Tribunal admitted the petition filed by Operation Creditor Jet Roadlines (India) Private…

## 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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