# In the matter of KVK NIlachal Power Private Limited IA No. 1027-2020 in CP(IB)No. 328-7-HDB-2018

> NCLT judgment dated 2020-12-17. Citation: TCN-2020-NCLT-00059. Power Finance Corporation Limited initiated corporate insolvency resolution process (CIRP)…

- **Court:** NCLT
- **Order date:** 17 Dec 2020
- **Citation:** TCN-2020-NCLT-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kvk-nilachal-power-private-limited-ia-no-1027-2020-in-cpibno-328-7-hdb-2018-6a969bfc

## Summary

### Background

Power Finance Corporation Limited initiated corporate insolvency resolution process (CIRP) against KVK Nilachal Power Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2019-09-17, and Mr. Rajendra Prasad Tak was appointed as the Interim Resolution Professional (IRP). During the CIRP, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor with 100% votes in their meeting held on 2020-03-16 and 2020-03-17, as no resolution plan was received. The Resolution Professional was authorized to file an application before the NCLT, Hyderabad Bench, for liquidation.

## Facts

Power Finance Corporation Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against KVK Nilachal Power Private Limited (Corporate Debtor). The application was admitted on 2019-09-17, and Mr. Rajendra Prasad Tak was appointed as the Interim Resolution Professional. In the first CoC meeting held on 2019-10-21, the Applicant was confirmed as the Resolution Professional. In the 8th CoC meeting held on 2020-03-16 and 2020-03-17, the CoC with 100% votes resolved for liquidation of the Corporate Debtor and to continue the RP as Liquidator. The CoC decided not to seek an extension of the CIRP period. No resolution plan was received under Section 30(6) of the I&B Code, 2016.

## Issues and analysis

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

**Ratio:** Section 33(1)(b) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Section 30(6)

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**Interpretation:** Section 33(1)(b) provides the Adjudicating Authority with the power to order

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**Application:** In this case, since no resolution plan was received and the CoC had resolved

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Power Finance…
- **Respondents:** KVK Nilachal…
- **Advocates:** Narendar…; Rahul K…

## Timeline

- **2018-01-01 — CIRP Init…**: CP(IB)No.328/7/HDB/2018 filed against…
- **2019-09-17 — CIRP Admi…**: Application under Section 7 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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