# In the matter of Kanik Electronics Pvt. Ltd. IA-3754-ND-2020 in Company Petition No. (IB)-1510(ND)-2019

> NCLT judgment dated 2020-10-12. Citation: TCN-2020-NCLT-00405. The case involves an application filed by Deepika Bhugra Prasad, the Resolution Professional of…

- **Court:** NCLT
- **Order date:** 12 Oct 2020
- **Citation:** TCN-2020-NCLT-00405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kanik-electronics-pvt-ltd-ia-3754-nd-2020-in-company-petition-no-ib-1510nd-2019-f7bc530c

## Summary

### Background

The case involves an application filed by Deepika Bhugra Prasad, the Resolution Professional of Kanik Electronics Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. Ester Industries Ltd., the Operational Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Kanik Electronics by filing an application under Section 9 of the IBC, which was admitted by the Tribunal on 30.09.2019. Ashu Gupta was initially appointed as the Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) replaced Ashu Gupta with Deepika Bhugra Prasad as the Resolution Professional (RP), confirmed by the Tribunal on 13.01.2020.

## Facts

Ester Industries Limited, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Kanik Electronics Pvt. Ltd. by filing an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted by the NCLT on 2019-09-30. Initially, Ashu Gupta was appointed as the Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) replaced Ashu Gupta with Deepika Bhugra Prasad as the Resolution Professional (RP), which was confirmed by the Tribunal on 2020-01-13. Form-G was published on 2019-12-27 to invite Expressions of Interest (EOI), but no EOI was received. The RP suggested re-publication of Form-G, but the CoC did not approve it. The average fair value of the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Kanik Electronics Private Limited, …

**Ratio:** Section 33(2) of the IBC allows the Resolution Professional to intimate the Adjudicating

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**Reasoning:** The Committee of Creditors, with 100% voting share, approved the resolution to liquidate

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** In this case, the CoC approved the liquidation with 100% voting share, and the

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## Parties

- **Judges:** Ch. Mohd Sharief…; Shri. L. N.…
- **Appellants:** Ester Industries…
- **Respondents:** Kanik Electronics…; Kapil G…

## Timeline

- **2019-09-30 — Admission of Application…**: The Tribunal admitted the application filed by Ester Industries Ltd. under Section 9 of…
- **2019-10-18 — Public Annou…**: The Interim Resolution Professional made a public announcement in the Form-A, which was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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