# 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-00321. The case involves an application filed by Poonam Kachalia, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 16 Nov 2018
- **Citation:** TCN-2018-NCLT-00321
- **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-c21c6d8f

## 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) rejected the proposal for extension of the CIRP period. The Resolution Professional filed a final progress report requesting liquidation.

## Facts

Poonam Kachalia, an operational creditor operating under the name 'Poonam Electricals', filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Hari Machines Limited, a company incorporated under the Companies Act, 1913. The claim was for Rs. 42,90,719.85. The application was initially admitted, and Mr. Nirupam Halder was appointed as the Interim Resolution Professional. The Committee of Creditors (CoC) rejected the proposal to extend the CIRP period with a 73.3% vote share. The Resolution Professional, citing his age, expressed unwillingness to act as Liquidator. The CoC proposed Mr. Kannan Tiruvengadam as the Liquidator. The Resolution Professional also submitted that an application was filed u/s 43 and 45 of the I&B Code

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency …

**Ratio:** The decision to extend the CIRP period rests with the Committee of Creditors (CoC), who

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**Reasoning:** The CoC, in its 9th meeting, rejected the proposal for extension of the CIRP period by a

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**Interpretation:** The Insolvency and Bankruptcy Code (IBC) grants significant decision-making

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**Application:** In this case, the CoC's decision to reject the extension of the CIRP period was

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## Parties

- **Judges:** Jinan…
- **Appellants:** Poonam Ka…
- **Respondents:** Hari Machines…
- **Advocates:** Nirupam H…; Neelima Cha…; +2 more

## Timeline

- **2018-05-15 — Application A…**: The application filed by Poonam Kachalia was admitted, and Mr. Nirupam Halder was…
- **2018-10-29 — CoC Meet…**: The Committee of Creditors (CoC) rejected the proposal for extension of the CIRP period…

## 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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