# In the matter of Gontermann - Peipers India Limited IA No. 432-KB-2021 in CP (IB) No.1542-KB-2018

> NCLT judgment dated 2021-04-30. Citation: TCN-2021-NCLT-02239. The case involves an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 30 Apr 2021
- **Citation:** TCN-2021-NCLT-02239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gontermann-peipers-india-limited-ia-no-432-kb-2021-in-cp-ib-no1542-kb-2018-58dbfb26

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Gontermann – Peipers India Limited. The resolution plan submitted by JSW Steel Limited was not approved by the Committee of Creditors (CoC) because the CoC requested the Resolution Applicant to remove a clause relating to the personal guarantee of the promoters of the Corporate Debtor, and the applicant did not submit a revised plan within the given timeframe. The CoC, in its fifteenth meeting on 03.04.2021, passed a resolution with 90.95% vote share to approve the liquidation.

## Facts

Balaji Metals, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Gontermann – Peipers India Limited. Mr. Raj Singhania was appointed as the Interim Resolution Professional (IRP). The CoC was duly constituted, and Form-G was published to invite Expression of Interest (EOI) for resolution plans. JSW Steel Limited emerged as the sole Resolution Applicant. However, the resolution plan submitted by JSW Steel Limited was not approved by the CoC due to disagreements over a clause related to the personal guarantee of the promoters of the Corporate Debtor. The CoC, in its fifteenth meeting held on 03.04.2021, passed a resolution with

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Gontermann …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The CoC, in its fifteenth meeting held on 03.04.2021, passed a resolution with 90.95%

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**Interpretation:** Section 33(2) provides a clear directive for the Adjudicating Authority to

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**Application:** In this case, the CoC, with a 90.95% vote share, resolved to liquidate the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Balaji M…
- **Respondents:** Gontermann…

## Timeline

- **2019-12-11 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **N/A — First CoC M…**: First meeting of the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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