# In the matter of Kusalava Batteries Private Limited IA No. 180 of 2020 in TCP (IB) No. 43-9- AMR-2019 {CP (IB) No. 546-9-HDB-2018}

> NCLT judgment dated 2021-03-15. Citation: TCN-2021-NCLT-02712. The case involves an application filed under section 53 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Mar 2021
- **Citation:** TCN-2021-NCLT-02712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kusalava-batteries-private-limited-ia-no-180-of-2020-in-tcp-ib-no-43-9-amr-2019-a946286e

## Summary

### Background

The case involves an application filed under section 53 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 38 of the IBBI (Liquidation Process) Regulations, 2016, seeking orders from the National Company Law Tribunal for the distribution of unsold assets among the stakeholders of Kusalava Batteries Private Limited. The operational creditor, Cyber Auto Parts, initiated the Corporate Insolvency Resolution Process (CIRP) against Kusalava Batteries Private Limited under Section 9 of the IBC, leading to the admission of the company petition and appointment of an Interim Resolution Professional (IRP). Subsequently, due to the lack of Expression of Interest (EOI) during the CIRP, the Committee of Creditors (COC) recommended liquidation, and the Tribunal ordered

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## Facts

Cyber Auto Parts, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Kusalava Batteries Private Limited by filing a company petition under Section 9 of the IBC, claiming Rs. 1,47,209. The Adjudicating Authority admitted the petition on 16.11.2018 and appointed an Interim Resolution Professional (IRP). Public announcements were made in Business Standard and Andhra Prabha on 17.11.2018. The first Committee of Creditors (COC) meeting was held on 13.12.2018. A second COC meeting was convened on 12.01.2019 to consider the invitation for Expression of Interest (EOI), with advertisements made on 14.01.2019. However, no EOI was received by 03.02.2019. Consequently, the COC decided on 11.02.2019 to extend the time for inviting EOI and to

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## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to distribute the unsold assets of the Corporate Debtor …

**Ratio:** The legal principle applied is based on Section 53(1)(H) of the IBC Code, 2016, read with

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**Reasoning:** The court reasoned that the applicant, as the appointed Liquidator, had followed the due

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**Interpretation:** The interpretation involves understanding the hierarchy of claims during

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Bhaskara Pantula…
- **Respondents:** Kusalava Batteries…; Cyber Auto…

## Timeline

- **2018-11-16 — Admission of Company…**: The Adjudicating Authority admitted the company petition filed by Cyber Auto Parts…
- **2018-11-17 — Public Annou…**: Public announcements were made in Business…

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