# In the matter of Hindupur Bio-Energy Private Limited I.A No. 963 of 2020 in CP (IB) No. 81-7-HDB-2020

> NCLT judgment dated 2020-11-10. Citation: TCN-2020-NCLT-00272. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Nov 2020
- **Citation:** TCN-2020-NCLT-00272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindupur-bio-energy-private-limited-ia-no-963-of-2020-in-cp-ib-no-81-7-hdb-2020-5ce7a8d8

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with the IBBI (Liquidation Process) Regulations, 2016, seeking an order for the liquidation of Hindupur Bio-Energy Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following the admission of a petition under Section 7 of the IBC filed by KSK Electricity Financing India Private Limited. The Interim Resolution Professional (IRP) was appointed, and a public announcement was made inviting claims from creditors. The Committee of Creditors (CoC) was constituted, and the IRP was confirmed as the Resolution Professional (RP).

## Facts

On 2020-03-16, the NCLT admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by KSK Electricity Financing India Private Limited against Hindupur Bio-Energy Private Limited, initiating the Corporate Insolvency Resolution Process (CIRP). Mrs. Narala Varalakshmi was appointed as the Interim Resolution Professional (IRP). A public announcement was issued on 2020-03-18, inviting claims from creditors, with a deadline of 2020-03-30. Only one claim was received from the Financial Creditor, amounting to Rs. 5,38,47,177. The Committee of Creditors (CoC) was constituted, and on 2020-07-16, the IRP was confirmed as the Resolution Professional (RP). Due to a slowdown in the power sector, Hindupur Bio-Energy Private Limited was unable to continue

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33(2) of the Insolvency …

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

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**Reasoning:** The Adjudicating Authority considered the fact that the Committee of Creditors (CoC),

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a Corporate Debtor

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**Application:** In this case, the CoC, with 100% voting share, decided to liquidate the

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Appellants:** KSK Energy…
- **Respondents:** Hindupur Bio-Energ…

## Timeline

- **2020-03-16 — Admission of…**: Petition under Section 7 of IBC filed by KSK Energy Electricity Financing India Private…
- **2020-03-18 — Public Annou…**: Public announcement was issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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