# In the matter of Hindusthan Ispat {Private Limited IA No. 225-2021 in CP (IB) No. 319-7-HDB-2020

> NCLT judgment dated 2021-10-01. Citation: TCN-2021-NCLT-00916. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 1 Oct 2021
- **Citation:** TCN-2021-NCLT-00916
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindusthan-ispat-private-limited-ia-no-225-2021-in-cp-ib-no-319-7-hdb-2020-59bc1e00

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 33(2) and 34 of the Insolvency and Bankruptcy Code, 2016, seeking orders for the liquidation of M/s Hindusthan Ispat Private Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following the admission of a Company Petition under Section 7 of the I&B Code, 2016. Mr. G. Madhusudhan Rao was appointed as the IRP.

## Facts

M/s Hindusthan Ispat Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) after a petition under Section 7 of the I&B Code, 2016 was admitted. G. Madhusudhan Rao was appointed as the Interim Resolution Professional (IRP). Bollina Uma Devi was the sole creditor. The Committee of Creditors (COC) decided to replace the IRP with a Resolution Professional (RP), Mrs. Mummaneni Vazra Laxmi, but this appointment was pending adjudication. The COC then decided to liquidate the Corporate Debtor due to the absence of assets and low debt recovery prospects. The IRP confirmed the lack of immovable assets, plant, and machinery. The COC voted with 100% share to liquidate the Corporate Debtor. The Adjudicating Authority considered the application for

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## Issues and analysis

### Issue 1: Whether the application for liquidation of M/s Hindusthan Ispat Private Limited should be allowed …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code allows the Adjudicating Authority

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**Reasoning:** The Committee of Creditors (COC) voted with 100% share to liquidate the Corporate Debtor,

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**Interpretation:** Section 33(2) and 34 of the I&B Code, read with Regulation 17(3) of the

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**Application:** Given the COC's decision and the IRP's report on the lack of assets and low

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## Parties

- **Judges:** Madan B.…; Veera Brahma Rao…
- **Appellants:** G. Madhusud…
- **Respondents:** Hindusthan Ispat…; Bollina Um…

## Timeline

- **2021-02-23 — Order Da…**: The Adjudicating Authority admitted the Company Petition CP (IB) No. 319/7/HDB/2020 filed…
- **2021-03-02 — Public Annou…**: The IRP issued a public announcement intimating the commencement of CIRP against the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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