# 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-00908. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 1 Oct 2021
- **Citation:** TCN-2021-NCLT-00908
- **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-a3417c91

## 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 after 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). The CIRP was initiated following the admission of a petition under Section 7 of the I&B Code, 2016. Mr. G. Madhusudhan Rao was appointed as the Interim Resolution Professional (IRP). The IRP issued a public announcement regarding the commencement of CIRP. Bollina Uma Devi was the sole creditor, and her claim was verified. The Committee of Creditors (COC) decided to replace the IRP with Mrs. Mummaneni Vazra Laxmi as Resolution Professional, but the appointment was pending adjudication. The COC then decided to liquidate the Corporate Debtor due to the absence of assets and low debt recoverability. The IRP filed an application for liquidation under Section 33(2) and 34

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s Hindusthan Ispat Private …

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

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**Reasoning:** The Adjudicating Authority noted that the COC, with 100% voting share, decided to

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**Interpretation:** Section 33(1)(a) grants the Adjudicating Authority the power to order

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**Application:** In this case, the COC's decision to liquidate the Corporate Debtor, coupled

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## Parties

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

## Timeline

- **2021-10-01 — Order Da…**: Final order passed for…
- **2021-02-23 — Admission of Company…**: The Adjudicating Authority admitted the Company Petition CP (IB) No. 319/7/HDB/2020 under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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