# In the matter of Gallium Industries Limited CA-87-C-III-ND-2018 In CP No.IB-195-ND-2017

> NCLT judgment dated 2018-12-17. Citation: TCN-2018-NCLT-00058. The application was moved seeking the liquidation of the Corporate Debtor (CD) by the…

- **Court:** NCLT
- **Order date:** 17 Dec 2018
- **Citation:** TCN-2018-NCLT-00058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gallium-industries-limited-ca-87-c-iii-nd-2018-in-cp-noib-195-nd-2017-32cce834

## Summary

### Background

The application was moved seeking the liquidation of the Corporate Debtor (CD) by the Resolution Professional based on the recommendations of the Committee of Creditors (CoC). The CIRP was initiated against the CD by the Tribunal vide order dated 21.7.2017. The first CoC meeting was held on 15.9.2017, where it was decided to extend the term of the Resolution Professional. The appointment of the Resolution Professional was further extended in the second CoC meeting held on 12.10.2017. Five status reports were filed reporting about the happenings during the CIRP of the CD. Claims were received from 4 Financial Creditors. At the conclusion of the CIRP period, out of 26 claims of Operational Creditors filed, 15 claims were admitted, and the rest were rejected due to

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## Facts

IndusInd Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Gallium Industries Limited. The Resolution Professional (RP) was appointed and the Committee of Creditors (CoC) was formed. Several CoC meetings were held, and the CIRP period was extended. Claims were invited from creditors, and some claims were admitted while others were rejected. Two notices inviting Expression of Interest (EoI) were published, and one Resolution Applicant submitted a resolution plan. However, the CoC rejected the resolution plan. The RP filed a final status report recommending liquidation. The fair value and liquidation value of the assets were determined. The CoC unanimously recommended liquidation, and no application was filed challenging the CoC's decision.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be approved given the CoC's …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) states that if the

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**Reasoning:** The CoC unanimously recommended liquidation, and no resolution plan was approved within

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**Interpretation:** Section 33(1) of the IBC mandates liquidation when no resolution plan is

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**Application:** Since no resolution plan was approved and the CoC recommended liquidation, the

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## Parties

- **Judges:** R. VARADH…; DR.V.K.Su…
- **Appellants:** IndusInd Bank…
- **Respondents:** Gallium Industries…

## Timeline

- **2017-07-21 — CIRP Init…**: CIRP was initiated against the…
- **2017-08-09 — Receipt of Certified…**: Certified copy of the…

## 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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