# In the matter of Forge & Foundry Ltd. IA 374-2019 in CP(IB) 21-2017

> NCLT judgment dated 2019-12-18. Citation: TCN-2019-NCLT-00104. The case involves an application for the dissolution of New Tech Forge & Foundry Limited under…

- **Court:** NCLT
- **Order date:** 18 Dec 2019
- **Citation:** TCN-2019-NCLT-00104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/forge-foundry-ltd-ia-374-2019-in-cpib-21-2017-753ac41a

## Summary

### Background

The case involves an application for the dissolution of New Tech Forge & Foundry Limited under Section 54(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 29.05.2017, and Mr. Arun Kumar Malani was appointed as Interim Resolution Professional. Subsequently, Mr. Premraj Ramratan Laddha replaced him as Resolution Professional. The Committee of Creditors (CoC) voted in favor of liquidating the Corporate Debtor under Section 33(2) of the IBC, and the Resolution Professional was appointed as Liquidator under Section 34(1). The liquidator took steps to liquidate the assets, including publishing public announcements, preparing stakeholder lists, and conducting e-auction sales.

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## Facts

New Tech Forge & Foundry Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 29.05.2017. Premraj Ramratan Laddha was appointed as the Resolution Professional, later becoming the Liquidator. The Committee of Creditors (CoC) decided to liquidate the company under Section 33(2) of the Insolvency and Bankruptcy Code (IBC). The liquidator published announcements, prepared stakeholder lists, and conducted e-auction sales. An e-auction was conducted, and M/s.Haq Steel & Metallik Private Ltd. purchased the factory premises for Rs.35.70 Crores. The liquidator distributed Rs.35 Crores to secured creditors, including State Bank of India, Oriental Bank of Commerce, and Corporation Bank. The State Tax Officer filed appeals challenging the

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## Issues and analysis

### Issue 1: Whether the petitioner Liquidator has duly complied with the prescribed procedure seeking for …

**Ratio:** Section 54 of the Code read with Regulation 45 of Insolvency and Bankruptcy Board of

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**Reasoning:** The court reviewed the documents annexed with the present petition and found that the

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**Interpretation:** Section 54 of the IBC outlines the process for dissolution of a corporate

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**Application:** The court applied these provisions to the facts of the case, noting that the

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Premraj Ramratan…
- **Respondents:** New Tech Forge &…; State Bank of…

## Timeline

- **2017-05-29 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2017-05-29 — Appointment…**: Mr. Arun Kumar Malani was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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