# 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-02648. The case involves an application filed by the Resolution Professional, instructed by the…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02648
- **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-d9524f55

## 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. 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. Two resolution plans were received, but one was withdrawn, and the other, submitted by Royal Touch Fablon

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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 this case, resolved with 100% voting share to liquidate the Corporate Debtor

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**Interpretation:** Section 33(2) provides a clear mechanism for liquidation when a resolution plan

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**Application:** Since the CoC voted with 100% share to liquidate the Corporate Debtor, the

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## Parties

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

## Timeline

- **2019-08-09 — Order for CIRP…**: Adjudicating Authority ordered initiation of CIRP against LTS Plastics (India) Private…
- **2019-08-12 — Public Annou…**: Public announcement was made in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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