# In the matter of Energo Engineering Projects Ltd. (IB)-160-(ND)-2017

> NCLT judgment dated 2018-08-21. Citation: TCN-2018-NCLT-00921. The case involves an application filed under Section 33(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Aug 2018
- **Citation:** TCN-2018-NCLT-00921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/energo-engineering-projects-ltd-ib-160-nd-2017-66ebd198

## Summary

### Background

The case involves an application filed under Section 33(1) of the Insolvency and Bankruptcy Code (IBC) seeking an order to liquidate the Corporate Debtor, M/s. LEVON Valves Pvt. Ltd., as the maximum period of 270 days for the Corporate Insolvency Resolution Process (CIRP) had expired. The CIRP was initiated on 05.09.2017. Due to a reference to IBBI, the Interim Resolution Professional (IRP) was appointed on 16.10.2017 and confirmed as Resolution Professional (RP) on 04.12.2017. The initial 180-day period for CIRP ended on 04.03.2018. The CoC recommended an extension of 90 days, which was granted until 26.02.2018 by the Adjudicating Authority-NCLT.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. LEVON Valves Pvt. Ltd. on 05.09.2017. An Interim Resolution Professional (IRP) was appointed on 16.10.2017 and later confirmed as Resolution Professional (RP) on 04.12.2017. The initial 180-day period for the CIRP ended on 04.03.2018. An extension of 90 days was granted until 26.02.2018. The Committee of Creditors (CoC) held nine meetings and invited resolution plans on 18.01.2018, 27.02.2018, and 25.04.2018, but no resolution plan was received. The average liquidation value of the assets of the Corporate Debtor is 127.67 crores. In a meeting on 31.07.2018, the CoC recommended the Corporate Debtor for liquidation. The maximum period of 270 days for CIRP expired on 02.06.2018, but the period

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1) of the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016 mandates that the Adjudicating

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**Reasoning:** The court reasoned that the maximum period permitted under Section 12 for the completion

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**Interpretation:** Section 33(1) is interpreted as a mandatory provision that requires the

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**Application:** The court applied Section 33(1) to the facts of the case, noting that the CIRP

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Respondents:** M/s. LEVON Valves…; Energo Engineering…

## Timeline

- **2017-09-05 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2017-10-16 — IRP Appoi…**: Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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