# 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-02506. 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-02506
- **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-d13bd4f3

## 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 several meetings were held to explore resolution plans. However, no resolution plan was submitted within the stipulated time, leading the CoC to request the RP to proceed with liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Newgen Specialty Plastics Limited after an application under Section 9 of the I&B Code, 2016, was admitted. Mr. Rajesh Parakh was initially appointed as the Interim Resolution Professional (IRP), followed by Mr. Anil Kumar as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and several meetings were conducted to explore resolution plans. The RP received two Expressions of Interest (EOI) but no resolution plan was submitted, even after extensions were granted to the directors of the company. The CoC, with Oriental Bank of Commerce holding 67% of the voting share, declined further extensions. Ultimately, the CoC voted unanimously for liquidation. The NCLT

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Newgen Specialty Plastics …

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

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**Reasoning:** The court reasoned that since no resolution plan was submitted despite multiple

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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 RP filed CA/452/C-III/ND/2019 in CP/IB/251/ND/2018 under

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## Parties

- **Judges:** CH. MOHD SHARIEF…; K.K. V…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s Newgen…; Anil K…

## Timeline

- **2018-11-19 — Admission of Ap…**: Application under Section 9 of the I&B Code, 2016 by the Operational Creditor (OC) was…
- **2018-11-19 — IRP Appoi…**: Mr. Rajesh Parakh was appointed as…

## 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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