# 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-01099. 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-01099
- **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-20-9c1ff435

## Summary

### Background

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

## 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) due to financial distress. The CIRP was admitted, and Smt. Revathi Sridharan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). During the CIRP, the RP found that the Corporate Debtor's registered office was vacant, and no accounts had been maintained since 2010. Customs and CBI raids had disrupted the Corporate Debtor's operations. The Committee of Creditors (CoC), with 100% voting rights, proposed a resolution for liquidation, which was unanimously passed due to the absence of a viable resolution plan. The RP then filed

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed under Section …

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

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**Reasoning:** The Adjudicating Authority deemed it fit to order liquidation based on the facts and

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

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**Application:** Since no resolution plan was formulated and the CoC voted for liquidation, the

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## Parties

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

## Timeline

- **2018-04-02 — Order Da…**: Smt. Revathi Sridharan was appointed as Interim Resolution Professional by the…
- **2018-04-16 — Public Advert…**: 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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