# In the matter of Nazar International Private Limited IA-450-CHE-2021 in IBA-635-2019

> NCLT judgment dated 2021-07-20. Citation: TCN-2021-NCLT-01673. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Jul 2021
- **Citation:** TCN-2021-NCLT-01673
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nazar-international-private-limited-ia-450-che-2021-in-iba-635-2019-ad9c5f28

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the Corporate Debtor, M/s. Nazar International Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a Section 7 application filed by a Financial Creditor. The applicant, Ramachandran Subramanian, was appointed as the Interim Resolution Professional (IRP). Public announcements were made, and a claim was received from the Financial Creditor, United Bank of India, for Rs. 26,05,03,309/-. The Committee of Creditors (CoC) was constituted with the sole Financial Creditor holding 100% voting share. Despite efforts to find a resolution applicant, no Expression of Interest (Eol) was received. The

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## Facts

M/s. Nazar International Private Limited faced insolvency proceedings initiated by a Financial Creditor under Section 7 of the IBC, 2016. Ramachandran Subramanian was appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP). Public announcements were made to invite claims and expressions of interest. The sole Financial Creditor, initially United Bank of India and later Punjab National Bank after amalgamation, constituted the Committee of Creditors (CoC). The CoC, holding 100% voting share, resolved to liquidate the Corporate Debtor due to the absence of any viable resolution plan. The fair value and liquidation value of the Corporate Debtor's assets were estimated at Rs. 6.35 Crore and Rs. 5.50 Crore, respectively. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(2) of the IBC, 2016, allows for the initiation of liquidation proceedings when

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**Reasoning:** The CoC, consisting of the sole Financial Creditor, resolved to liquidate the Corporate

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

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor, coupled

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Ramachandran…
- **Respondents:** M/s. Nazar…

## Timeline

- **2019-12-13 — Initiation…**: Tribunal passed an order initiating the Corporate Insolvency Resolution Process (CIRP) in…
- **2019-12-17 — Public Annou…**: Public announcement was made under Section 15 of IBC, 2016, in Form-A in English in…

## 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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