# In the matter of Hari Machines Ltd. CA (IB) No. 703 & 1027-KB-2018 In C.P (IB) No. 109-KB-2018

> NCLT judgment dated 2018-11-16. Citation: TCN-2018-NCLT-00316. The case involves an application filed by Poonam Kachalia, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 16 Nov 2018
- **Citation:** TCN-2018-NCLT-00316
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hari-machines-ltd-ca-ib-no-703-1027-kb-2018-in-cp-ib-no-109-kb-2018-173665ac

## Summary

### Background

The case involves an application filed by Poonam Kachalia, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Hari Machines Limited, claiming an outstanding amount of Rs. 42,90,719.85. The application was initially admitted, and an Interim Resolution Professional (IRP), Mr. Nirupam Halder, was appointed. The Committee of Creditors (CoC) later rejected the proposal for extending the CIRP period, leading the Resolution Professional to file a final Progress Report requesting liquidation.

## Facts

Poonam Kachalia, operating as Poonam Electricals, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Hari Machines Limited, claiming an outstanding debt of Rs. 42,90,719.85. The application was initially admitted on 2018-05-15, and Mr. Nirupam Halder was appointed as the Interim Resolution Professional (IRP). Mr. Halder conducted the resolution process and issued a public announcement. However, no resolution plan was received. The Committee of Creditors (CoC), in its 9th meeting on 2018-10-29, rejected the proposal for extending the CIRP period with a 73.3% vote share. The Resolution Professional, despite noting that the Corporate Debtor had a good factory, was compelled to file a final Progress Report requesting liquidation. The

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be extended given the Committee …

**Ratio:** The decision of the Committee of Creditors (CoC) regarding the extension of the CIRP

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**Reasoning:** The CoC, representing the financial creditors, holds the authority to decide on the

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**Interpretation:** The Insolvency and Bankruptcy Code (IBC) grants significant autonomy to the CoC

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**Application:** Given the CoC's decision to reject the extension of the CIRP period, the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Poonam Ka…
- **Respondents:** Hari Machines…

## Timeline

- **2018-05-15 — Admission of Ap…**: Application filed by Poonam Kachalia…
- **2018-05-15 — Appointment…**: Mr. Nirupam Halder appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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