# In the matter of GCL Pvt. Ltd.  I.A. No. 145-2020 in C.P.(IB)No. 101-BB-2018

> NCLT judgment dated 2020-06-15. Citation: TCN-2020-NCLT-01169. The case involves I.A.No.145/2020 in C.P.(IB)No.101/BB/2018 filed by Mr. Srikantiah Shivaswamy,…

- **Court:** NCLT
- **Order date:** 15 Jun 2020
- **Citation:** TCN-2020-NCLT-01169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gcl-pvt-ltd-ia-no-145-2020-in-cpibno-101-bb-2018-f151e878

## Summary

### Background

The case involves I.A.No.145/2020 in C.P.(IB)No.101/BB/2018 filed by Mr. Srikantiah Shivaswamy, the Resolution Professional of GCL Pvt. Ltd., seeking to initiate the liquidation process of the Corporate Debtor (GCL Pvt. Ltd.) and to direct the Secured Creditor to participate in the liquidation process. Initially, Mr. R. N. Manoharan had filed C.P.(IB)No.101/BB/2018 under Section 9 of the IBC, which was admitted, initiating CIRP and appointing Shri Shivadutt Bannanje as IRP. Subsequently, the CoC, with Canara Bank as the sole financial creditor, decided to replace the IRP with Mr. Srikantiah Shivaswamy. Despite efforts, no viable resolution plan was received, leading to the decision to liquidate the Corporate Debtor.

## Facts

Mr. R. N. Manoharan initially filed C.P.(IB)No.101/BB/2018 under Section 9 of the IBC against GCL Pvt. Ltd. due to a default of Rs.20,70,807/-, leading to the initiation of CIRP on 2019-05-01. Shri Shivadutt Bannanje was appointed as the initial IRP. The CoC, consisting solely of Canara Bank, voted against retaining Shri Shivadutt Bannanje as RP and decided to appoint Mr. Srikantiah Shivaswamy in his place. Despite inviting Expression of Interest, no viable resolution plan was received. The CoC, with a 92.97% majority, approved an extension of time for resolution applicants, but only Lohia Corp Kanpur showed initial interest before withdrawing. Canara Bank, the sole secured financial creditor, wanted to stay out of the liquidation process and refused to meet the usual

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## Issues and analysis

### Issue 1: Whether any viable/acceptable Resolution was received during the period of initial statutory period …

**Ratio:** Section 33 of the IBC allows for the initiation of liquidation proceedings if no viable

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**Reasoning:** The court noted that despite best efforts, no acceptable resolution plan was received.

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

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**Application:** Since no viable resolution plan was received for GCL Pvt. Ltd., the court

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Srikantiah…
- **Respondents:** GCL Pvt.…; The Committee of…

## Timeline

- **2018-01-01 — Initial Appl…**: C.P.(IB)No.101/BB/2018 filed by R.…
- **2019-05-01 — CIRP Init…**: Application admitted, initiating CIRP and…

## 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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