# In the matter of Nicomet Industries Limited I.A. No. 713 of 2020 in C.P. (IB) No. 619-MB-2018

> NCLT judgment dated 2020-12-16. Citation: TCN-2020-NCLT-00066. The case involves an application filed by the Resolution Professional (RP) of Nicomet…

- **Court:** NCLT
- **Order date:** 16 Dec 2020
- **Citation:** TCN-2020-NCLT-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nicomet-industries-limited-ia-no-713-of-2020-in-cp-ib-no-619-mb-2018-ae71a56f

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Nicomet Industries Limited, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016. The RP was appointed as the Interim Resolution Professional (IRP) and later as the RP. The ex-promoters challenged the admission order, leading to a stay by the Supreme Court, which was later lifted. The Committee of Creditors (CoC) rejected the resolution plans and resolved to liquidate the Corporate Debtor.

## Facts

The petition was filed under Section 33(1) of the IBC, 2016. The Corporate Debtor is Nicomet Industries Limited. The Resolution Professional (RP) is Devang Sampat. The CIRP was initiated based on a petition under Section 9 of the IBC. The ex-promoters challenged the admission order, leading to a stay by the Supreme Court, which was later lifted. The CoC rejected all resolution plans submitted. The CoC then resolved to liquidate the Corporate Debtor with a voting share of 96.12%. The RP sought directions regarding CIRP costs. The RP has not given his consent to act as the liquidator. The CIRP period of 180 days was due to expire on 25.09.2019, and was extended by 90 days until 23.12.2019.

## Issues and analysis

### Issue 1: Whether the application for liquidation of …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The CoC, with a significant majority, resolved to liquidate the Corporate Debtor after

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**Interpretation:** Section 33 provides a mechanism for liquidation when resolution is not

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**Application:** Given the CoC's decision and the failure of the resolution process, the court

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Nico Extrusions…
- **Respondents:** Nicomet Industries…

## Timeline

- **2018-12-14 — Admission of…**: The Bench admitted the Petition (С.Р. (IB) 619/MB/2018) under Section 9 of the Insolvency…
- **2019-01-05 — Constitution…**: The IRP constituted the…

## 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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