# In the matter of Krishnaa Energy Private Limited IA-880(CHE)-2021 in IBA-1075-2019

> NCLT judgment dated 2022-01-06. Citation: TCN-2022-NCLT-04524. The case involves an application filed under Section 33(1)(a) and 34(1) read with Section 60(5)…

- **Court:** NCLT
- **Order date:** 6 Jan 2022
- **Citation:** TCN-2022-NCLT-04524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krishnaa-energy-private-limited-ia-880che-2021-in-iba-1075-2019-199e03f6

## Summary

### Background

The case involves an application filed under Section 33(1)(a) and 34(1) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of M/s. Krishnaa Energy Private Limited. An earlier application, IBA 1075 of 2019, was filed by the Corporate Debtor for initiating CIRP. The Tribunal admitted the application and appointed an Interim Resolution Professional (IRP). The IRP convened meetings of the Committee of Creditors (CoC). Due to various reasons, including COVID-19, the appointment of a Resolution Professional (RP) was delayed. The CoC eventually approved the liquidation of the Corporate Debtor.

## Facts

M/s. Krishnaa Energy Private Limited faced insolvency proceedings initiated by the Corporate Debtor itself under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Tribunal admitted the application on 2019-11-22 and appointed an Interim Resolution Professional (IRP). The IRP constituted a Committee of Creditors (CoC), with Canara Bank holding the dominant share (95.52%). Several CoC meetings were held, but the appointment of a permanent Resolution Professional (RP) was delayed. The Corporate Debtor had been inactive since 2017, lacking a resolution plan due to the unavailability of machinery and labor. In the 6th CoC meeting held on 2021-06-11, the majority approved the liquidation of the Corporate Debtor. Mr. B. Ramana Kumar, the applicant, provided his

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Krishnaa Energy Private Limited, should be liquidated under …

**Ratio:** The legal principle applied is that if a corporate debtor is inactive and lacks a viable

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**Reasoning:** The court reasoned that the Corporate Debtor had been inactive since July 2017 and had no

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**Interpretation:** Section 33 of the IBC allows for the liquidation of a corporate debtor when

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**Application:** The court applied the ratio to the facts by noting the Corporate Debtor's

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** Mr.B.Ramana…
- **Respondents:** M/s. Krishnaa…

## Timeline

- **2019-11-22 — CIRP Init…**: Tribunal passed an order admitting the…
- **2019-12-20 — 1st CoC M…**: The 1st Meeting of the CoC was planned, but the dominant member Canara Bank was unable to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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