# In the matter of Lanco Kondapalli Power Limited IA No. 750-2020 in CP(IB)No. 678-7-HDB-2018

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02364. Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Lanco…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-kondapalli-power-limited-ia-no-750-2020-in-cpibno-678-7-hdb-2018-5fa29fc8

## Summary

### Background

Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Lanco Kondapalli Power Ltd (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The application was admitted on 2019-04-23. The CIRP period was extended, and the Resolution Professional (RP) sought exclusion of certain time periods. Despite attempts to revive the Corporate Debtor, no commercially acceptable resolution plan was received. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor with a 98.8% voting share.

## Facts

Axis Bank Limited, a financial creditor, initiated CIRP against Lanco Kondapalli Power Ltd under Section 7 of IBC. The CIRP commenced on 2019-04-23. The initial CIRP period of 180 days was extended by 90 days. The RP filed an application seeking exclusion of certain time periods from the CIRP. The CoC, in its 14th meeting on 2020-06-22, resolved to liquidate the Corporate Debtor with a 98.8% voting share due to the absence of a viable resolution plan. The CoC also considered the possibility of excess cash available with the Corporate Debtor and the distribution of surplus cash flows to secured creditors. The Resolution Professional filed IA No. 750/2020 seeking liquidation, which was subsequently allowed by the Adjudicating Authority. The liquidator was instructed to

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## Issues and analysis

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

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received despite attempts to

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**Interpretation:** Section 33(2) provides a clear legal basis for liquidation when resolution

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**Application:** In this case, the absence of a resolution plan and the CoC's decision to

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## Parties

- **Judges:** Madan B.…; BINOD KUMAR…
- **Respondents:** Lanco Kondapalli…

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB)No.678/7/HDB/2018 filed by Axis Bank…
- **2019-04-23 — CIRP Comm…**: Adjudicating Authority admitted the…

## 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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