# In the matter of G B Engineering Enterprises Pvt. Ltd. MA-285-IB-2018 in CP-64-(IB)-2017

> NCLT judgment dated 2018-08-06. Citation: TCN-2018-NCLT-00999. The case involves a corporate insolvency resolution process (CIRP) initiated against M/s. GB…

- **Court:** NCLT
- **Order date:** 6 Aug 2018
- **Citation:** TCN-2018-NCLT-00999
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/g-b-engineering-enterprises-pvt-ltd-ma-285-ib-2018-in-cp-64-ib-2017-04c0f5b7

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) initiated against M/s. GB Engineering Enterprises Private Limited under Section 10 of the I&B Code, 2016. The CIRP was triggered after the corporate debtor filed an application. A moratorium was declared, and an Interim Resolution Professional (IRP), Mr. R. Sundaram, was appointed. Subsequently, the CoC proposed the appointment of Ms. CS Satyadevi Alamuri as the Resolution Professional, which was approved by the Adjudicating Authority. Despite efforts, no resolution plan was received within the stipulated CIRP period. The CoC, in its 4th meeting, concluded that there was no scope for a resolution plan and resolved to file an application for liquidation.

## Facts

M/s. GB Engineering Enterprises Private Limited initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the I&B Code, 2016. The CIRP commenced after the application was admitted, and a moratorium was declared. Mr. R. Sundaram was appointed as the Interim Resolution Professional (IRP). Subsequently, Ms. CS Satyadevi Alamuri was appointed as the Resolution Professional. An invitation for 'Expression of Interest' (EoI) was advertised, but no resolution plan was submitted. The Corporate Debtor's operations were described as minuscule with high overheads and low production capacity. The Committee of Creditors (CoC) unanimously decided that there was no scope for a resolution plan and resolved to file an application for liquidation. The CIRP period

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, M/s. GB …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016, stipulates that where no resolution plan is

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**Reasoning:** The Adjudicating Authority noted that despite the initiation of the CIRP and the efforts

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if the CIRP fails to produce a

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**Application:** In this case, the Resolution Professional filed MA/285/2018 stating that no

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** CS SATYADEVI…
- **Respondents:** GB Engineering…; ACHUTHAN THAZHATHE…

## Timeline

- **2018-01-25 — Order for CIRP…**: The Authority admitted the application and initiated the CIRP against the Corporate…
- **2018-03-05 — CoC Meet…**: The CoC in its 1st Meeting proposed to appoint Ms. CS Satyadevi Alamuri as 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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