# In the matter of Ispat Energy Ltd. MA 1217-2018 In C.P.(IB)-278-(MB)-2017

> NCLT judgment dated 2018-11-14. Citation: TCN-2018-NCLT-00341. The case involves an application for the liquidation of Ispat Energy Ltd., the Corporate…

- **Court:** NCLT
- **Order date:** 14 Nov 2018
- **Citation:** TCN-2018-NCLT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ispat-energy-ltd-ma-1217-2018-in-cpib-278-mb-2017-a45ddaf1

## Summary

### Background

The case involves an application for the liquidation of Ispat Energy Ltd., the Corporate Debtor, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. Damani Shipping Pvt. Ltd., an Operational Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Ispat Energy Ltd. The CIRP was admitted on 2018-04-25, and Mr. Jayesh H. was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) approved a resolution recommending liquidation with 100% voting, as the Corporate Debtor had no substantial assets or active business operations. A company petition for winding up of the Corporate Debtor was previously filed before the Hon'ble High Court of Bombay and was

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## Facts

Damani Shipping Pvt. Ltd., an Operational Creditor, initiated CIRP against Ispat Energy Ltd. under Section 9 of the IBC. The CIRP was admitted on 2018-04-25, and Mr. Jayesh H. was appointed as IRP and later confirmed as RP. The IRP issued a public announcement on 2018-05-04 inviting claims from creditors. The CoC was constituted, comprising financial creditors of the Corporate Debtor. The first CoC meeting took place on 2018-06-26, where the CoC approved the resolution allowing IRP to continue as RP. The CoC approved a resolution recommending liquidation of the Corporate Debtor with 100% voting on 2018-07-12, as the company had no substantial assets or active business operations. The RP appointed two registered valuers to determine the liquidation value of the assets.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The CoC approved the resolution for liquidation with 100% voting, considering that the

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to

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**Application:** In this case, the CoC's decision to approve liquidation with 100% voting,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Jayes…
- **Respondents:** Ispat Energ…

## Timeline

- **2016-07-19 — Winding up P…**: A company petition was filed before the Hon'ble High Court of Bombay for winding up of…
- **2017-02-01 — Transfer t…**: The winding up petition…

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