# In the matter of Frontier Lifeline Private Limited MA-697-2019 in CP-698-IB-CB-2017

> NCLT judgment dated 2019-09-04. Citation: TCN-2019-NCLT-01572. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 4 Sept 2019
- **Citation:** TCN-2019-NCLT-01572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/frontier-lifeline-private-limited-ma-697-2019-in-cp-698-ib-cb-2017-61683397

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, concerning M/s. Frontier Lifeline Private Limited. The Corporate Debtor sought liquidation based on a resolution passed by the Committee of Creditors (CoC) on April 29, 2019, with 100% voting in favor at the 8th CoC meeting. This was due to the 270-day period ending without approval of a Resolution Plan. The Resolution Professional determined the liquidation value to be ₹1,34,07,43,263. The Resolution Plan presented to the CoC on April 29, 2019, with a value of ₹116 Crores, was not considered within the CIRP period. The Resolution Professional then sought an exclusion of 43 days from the CIRP period, leading to an order dated June 18, 2019.

## Facts

M/s. Frontier Lifeline Private Limited faced corporate insolvency. The CoC approved a resolution for liquidation on April 29, 2019, due to the failure of the resolution process within the stipulated 270-day period. The liquidation value was determined to be ₹1,34,07,43,263. A resolution plan with a value of ₹116 Crores was presented but not considered by the CoC within the CIRP period. The Resolution Professional sought exclusion of 43 days from the CIRP period. An appeal was filed before the NCLAT, which disposed of the appeal, allowing for negotiations with creditors. No scheme was proposed under Section 230 of the Companies Act, 2013. The NCLT then ordered liquidation under Section 33(1) of the IBC, 2016. Mr. S. Rajagopal, the Resolution Professional, was appointed

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated under Section 33 of the IBC, 2016, due to the …

**Ratio:** Section 33 of the IBC, 2016, allows for liquidation when the resolution process fails and

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

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CIRP fails,

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**Application:** In this case, the CoC rejected the resolution plan, and no alternative scheme

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Shri. S. Ra…
- **Respondents:** M/s. Frontier…; M/s. State Bank…

## Timeline

- **2019-04-29 — CoC Meet…**: CoC passed a resolution for…
- **2018-08-02 — Admission of CP/698/IB/2…**: CP/698/IB/2017 was…

## 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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