# in the matter of Linus Processors Private Limited CP (IB) No. 64-KB-2018

> NCLT judgment dated 2018-12-19. Citation: TCN-2018-NCLT-00045. Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 Dec 2018
- **Citation:** TCN-2018-NCLT-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/linus-processors-private-limited-cp-ib-no-64-kb-2018-15d644dd

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Linus Processors Private Ltd, the Corporate Debtor. The Adjudicating Authority admitted the Corporate Debtor into the Corporate Insolvency Resolution Process (CIRP) on 2018-03-13. Mr. Hanuman Mal Choraria was appointed as the Interim Resolution Professional (IRP). A moratorium under Section 14 was issued. The IRP filed the first interim report on 2018-04-05 and published the CIRP notice in 'Business Standard' and 'Aajkal' on 2018-03-15, inviting creditors to submit claims.

## Facts

Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Linus Processors Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2018-03-13, and a moratorium was declared. Hanuman Mal Choraria was appointed as the Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). Bank of India was the sole creditor, forming the Committee of Creditors (CoC) with 100% voting share. The RP failed to solicit resolution plans, and the Corporate Debtor did not cooperate. The CIRP period was extended, but no resolution plan was received. Consequently, the CoC recommended liquidation. The Adjudicating Authority, noting the RP's failure to publish an Expression of Interest

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Linus Processors Private Limited, should be liquidated due to the …

**Ratio:** When no resolution plan is received during the Corporate Insolvency Resolution Process

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**Reasoning:** The court reasoned that since no resolution plan was received for the Corporate Debtor,

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**Interpretation:** The interpretation of the I&B Code emphasizes the importance of timely

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**Application:** In this case, the absence of a resolution plan despite the extension of the

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Bank of…
- **Respondents:** Linus Processors…

## Timeline

- **2018-03-13 — Admission in…**: Adjudicating Authority admitted the Corporate Debtor into Corporate Insolvency Resolution…
- **2018-03-15 — CIRP Notice Pu…**: CIRP notice published in 'Business…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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