# In the matter  of Jai Bhavani Steels Enterprises Private Limited MA-236-IB-2018 In CP-183-IB-CB-2018

> NCLT judgment dated 2018-07-23. Citation: TCN-2018-NCLT-01098. The case involves an application filed under Section 33(2) read with Section 60 of the…

- **Court:** NCLT
- **Order date:** 23 Jul 2018
- **Citation:** TCN-2018-NCLT-01098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jai-bhavani-steels-enterprises-private-limited-ma-236-ib-2018-in-cp-183-ib-cb-20-17796054

## Summary

### Background

The case involves an application filed under Section 33(2) read with Section 60 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of liquidation proceedings against M/s. Jai Bhavani Steels Enterprises Private Limited ('Corporate Debtor'). The original petition under Section 7 Rule 4 of the IBC, 2016, was filed by M/s. SREI Equipment Finance Limited, the Financial Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The CP (CP/183/IB/CB/2018) was admitted, and Smt. Revathi Sridharan was appointed as Interim Resolution Professional (IRP). Subsequently, she was appointed as Resolution Professional (RP) based on the recommendation of the Committee of Creditors (CoC).

## Facts

M/s. SREI Equipment Finance Limited, a Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Jai Bhavani Steels Enterprises Private Limited ('Corporate Debtor'). The CIRP was initiated due to the Corporate Debtor's inability to repay its debts. Smt. Revathi Sridharan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). During the CIRP, the RP discovered that the Corporate Debtor's registered office was non-operational, and its accounts were not maintained beyond 2010. Customs officials and the CBI had previously raided the Corporate Debtor's premises. The Committee of Creditors (CoC), with 100% voting rights, proposed a resolution for liquidation of the Corporate Debtor, which was

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Jai Bhavani Steels …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to order the

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**Reasoning:** The Tribunal reasoned that since there was no viable resolution plan and the CoC had

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** In this case, the RP's application was based on the CoC's unanimous decision to

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Revathi Sri…
- **Respondents:** M/s. Jai Bhavani…

## Timeline

- **2018-04-02 — Order for Appointment of Interim Resolution…**: Smt. Revathi Sridharan was appointed as Interim Resolution Professional by the…
- **2018-04-16 — Public Annou…**: RP issued public advertisement for receipt of…

## 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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