# In the matter of Newgen Speciality Private Limited CA-452 & 962-C-III-ND-2019 in CP-IB-1251-ND-2018

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02514. The case involves an application for liquidation of the Corporate Debtor, M/s. Newgen Specialty…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/newgen-speciality-private-limited-ca-452-962-c-iii-nd-2019-in-cp-ib-1251-nd-2018-5c95843b

## Summary

### Background

The case involves an application for liquidation of the Corporate Debtor, M/s. Newgen Specialty Plastics Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated, and Mr. Rajesh Parakh was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Anil Kumar was appointed as the Resolution Professional (RP). During the CIRP, the Committee of Creditors (CoC) was formed, and meetings were held to explore resolution plans. However, no resolution plan was submitted within the extended period, leading the CoC to request the RP to proceed with liquidation. The CoC, with Oriental Bank of Commerce holding 67% of the voting share, ultimately resolved to liquidate the company.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Newgen Specialty Plastics Limited. Mr. Rajesh Parakh was initially appointed as the Interim Resolution Professional (IRP), followed by Mr. Anil Kumar as the Resolution Professional (RP). The IRP took over the management of the Corporate Debtor and invited claims from creditors. The Committee of Creditors (CoC) was formed, and several meetings were held to explore resolution plans. The RP sought interim finance and received expressions of interest, but none were approved. The sole resolution applicant requested extensions for submitting their plan, but ultimately, no resolution plan was submitted, even after extensions. The CoC, with Oriental Bank of Commerce holding a significant voting

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Newgen Specialty Plastics Limited, should be liquidated due to …

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

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**Reasoning:** The court reasoned that since no resolution plan was submitted within the extended

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if the CIRP fails to

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

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## Parties

- **Judges:** CH. MOHD SHARIEF…; K.K. V…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s Newgen…; Anil K…
- **Advocates:** Vaibhav M…; Rajendra B…; +2 more

## Timeline

- **2018-11-19 — Order for CIRP…**: The Authority admitted IB/1251/ND/2018 filed under Section 9 of the I&B Code, 2016 by the…
- **2018-11-19 — IRP Takes Over…**: The IRP took over the management of the CD and issued a newspaper publication inviting…

## 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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