# 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-00060. The application was moved seeking liquidation of the Corporate Debtor (CD) by the Resolution…

- **Court:** NCLT
- **Order date:** 17 Dec 2018
- **Citation:** TCN-2018-NCLT-00060
- **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-f9876ba5

## Summary

### Background

The application was moved seeking liquidation of the Corporate Debtor (CD) by the Resolution Professional (RP) 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 RP. The appointment of the RP was further extended in the second CoC meeting held on 12.10.2017. Five status reports were filed reporting the happenings during the CIRP. Claims were received from 4 Financial Creditors and 26 Operational Creditors. The CIRP period was extended from 180 to 270 days. There was no cooperation from Key Managerial Personnel (KMP). Public notice calling for Expression of Interest (EoI) was

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## Facts

IndusInd Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Gallium Industries Limited. The CIRP was initiated on 21.7.2017. Several Committee of Creditors (CoC) meetings were held, and the term of the Resolution Professional (RP) was extended. Claims were received from financial and operational creditors. The CIRP period was extended from 180 to 270 days. The Key Managerial Personnel (KMP) did not cooperate. An Expression of Interest (EoI) was published, and a resolution plan was submitted but later rejected by the CoC. The fair value of assets was valued at Rs.10,75,83,816/- and Rs.14,70,37,934/- respectively, while liabilities/claims admitted stood at Rs.85.19 crores. The CoC unanimously rejected the resolution plan, leading to the

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## Issues and analysis

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

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

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**Reasoning:** The CoC unanimously rejected the resolution plan. No other viable resolution was

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**Interpretation:** Section 33 of IBC, 2016 mandates liquidation when a resolution plan is not

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**Application:** The CoC rejected the resolution plan. The Tribunal found no reason to challenge

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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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