# In the matter of LTS Plastics (India) Private Limited IA (IB) No. 1299-KB-2020
In CP (IB) No. 1369-KB-2018

> NCLT judgment dated 2021-03-18. Citation: TCN-2021-NCLT-02652. The case involves an application filed by the Resolution Professional, instructed by the…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lts-plastics-india-private-limited-ia-ib-no-1299-kb-2020-in-cp-ib-no-1369-kb-201-591cdaba

## Summary

### Background

The case involves an application filed by the Resolution Professional, instructed by the Committee of Creditors (CoC), seeking liquidation of the Corporate Debtor, LTS Plastics (India) Private Limited. The resolution plan received was rejected, leading to this application. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Sydarshan Agencies Private Limited, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. Hrishikesh Das Gupta was appointed as the Interim Resolution Professional (IRP) initially.

## Facts

Sydarshan Agencies Private Limited, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against LTS Plastics (India) Private Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority ordered the initiation of CIRP and appointed Hrishikesh Das Gupta as the Interim Resolution Professional (IRP). Public announcement was made to invite claims from creditors. The Committee of Creditors (CoC) was constituted with one financial creditor. The CoC replaced the IRP with Sanjeev Jhunjhunwala as the Resolution Professional (RP). Invitation for Expression of Interest (EoI) was published multiple times with extended deadlines. Two resolution plans were received, but one was withdrawn. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, LTS Plastics (India) Private …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The CoC, in its 17th meeting, resolved to proceed for liquidation of the Corporate Debtor

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the CoC,

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**Application:** In this case, the CoC rejected the resolution plan and approved the liquidation

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** LTS Plastics…

## Timeline

- **2019-08-09 — Order for Initiation of…**: The Adjudicating Authority passed an order for the initiation of the Corporate Insolvency…
- **2019-08-12 — Public Annou…**: Public announcement was made in Financial Express (English) and Ekdin (Bengali) of…

## Legal provisions

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

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