# In the matter of Neo Corp International Limited IA No. 1986 of 2020 in C.P. (IB) No. 4738-MB-2018

> NCLT judgment dated 2021-08-05. Citation: TCN-2021-NCLT-01455. The case involves an application filed by the Resolution Professional, Mr. Santanu T. Ray,…

- **Court:** NCLT
- **Order date:** 5 Aug 2021
- **Citation:** TCN-2021-NCLT-01455
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/neo-corp-international-limited-ia-no-1986-of-2020-in-cp-ib-no-4738-mb-2018-df6e44c3

## Summary

### Background

The case involves an application filed by the Resolution Professional, Mr. Santanu T. Ray, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, to initiate the liquidation process against Neo Corp International Limited (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 9 of the Code. An Interim Resolution Professional (IRP) was appointed, who made a public announcement for inviting claims from creditors and constituted the Committee of Creditors (CoC). The CoC then resolved to appoint Mr. Santanu T. Ray as the Resolution Professional (RP), replacing the erstwhile IRP. The RP issued Form-G, inviting expression of interest (EOI) from prospective resolution applicants (PRAs),

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Neo Corp International Limited after a petition was admitted under Section 9 of the Insolvency and Bankruptcy Code (IBC). Asha Manajit Ghoshal was initially appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement to invite claims from creditors and subsequently formed a Committee of Creditors (CoC). The CoC then replaced the IRP with Santanu T. Ray as the Resolution Professional (RP). The RP issued Form-G to invite Expressions of Interest (EOIs) from prospective resolution applicants (PRAs). The RP received only two EOIs initially, and later, after reissuing Form-G, received three EOIs. However, the plans received from the PRAs were non-compliant with the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) is obligated to initiate the liquidation process under …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, mandates that where the

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**Reasoning:** The court reasoned that the CoC, in its wisdom, resolved with 91.04% voting share in

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**Interpretation:** Section 33(1) is interpreted to mean that the Adjudicating Authority's role is

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**Application:** In this case, since no viable resolution plan was received despite multiple

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## Parties

- **Judges:** Shri. Bhaskara…; Shri. Narendra…
- **Appellants:** Santanu T…
- **Respondents:** Neo Corp Internati…; Plastiblends…

## Timeline

- **2019-09-19 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) initiated by the Tribunal vide order dated…
- **2019-10-16 — IRP Repo…**: The erstwhile IRP constituted the Committee of Creditors (CoC) and filed the report for…

## 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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