# In the matter of Firestar International Limited I.A. 2037 of 2020 in C.P. No. 2019 of 2019

> NCLT judgment dated 2021-08-10. Citation: TCN-2021-NCLT-01383. The case involves an application filed by the Resolution Professional, Mr. Ram Ratan Kanoongo,…

- **Court:** NCLT
- **Order date:** 10 Aug 2021
- **Citation:** TCN-2021-NCLT-01383
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/firestar-international-limited-ia-2037-of-2020-in-cp-no-2019-of-2019-5e03837a

## Summary

### Background

The case involves an application filed by the Resolution Professional, Mr. Ram Ratan Kanoongo, seeking the liquidation of Firestar International Limited (Corporate Debtor) under Section 33(1) read with Section 60 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Firestar International Limited after the petition filed by Corporation Bank (Financial Creditor) was admitted under Section 7 of the Code. The applicant was appointed as the Interim Resolution Professional (IRP).

## Facts

Corporation Bank initiated Corporate Insolvency Resolution Process (CIRP) against Firestar International Limited. The petition was admitted under Section 7 of the Insolvency and Bankruptcy Code, 2016, leading to the appointment of Mr. Ram Ratan Kanoongo as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed, and two meetings were held. In the first meeting, a proposal to confirm the IRP as the Resolution Professional (RP) and fix his fees was not passed due to the lack of the required voting majority. In the second meeting, the CoC decided to pursue liquidation based on the lack of business prospects, insufficient assets, and the infeasibility of a resolution plan. An E-Voting concluded with a 93.31% majority in favor of liquidation.

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## Issues and analysis

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

**Ratio:** The decision of the Committee of Creditors (CoC) holds significant weight, especially

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**Reasoning:** The tribunal relied on the settled principle of law regarding the Commercial Wisdom of

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**Interpretation:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the

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**Application:** The CoC's decision to liquidate Firestar International Limited was based on the

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Ram Ratan K…
- **Respondents:** Firestar Internati…; Corporatio…

## Timeline

- **2019-11-18 — Admission of…**: The Tribunal admitted the petition filed by…
- **2020-03-31 — Deadline for Creditor…**: Creditors of the Corporate Debtor were required to submit proof of their claims on or…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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