# In the matter of Om Shakthi Renergies Limited IA No. 03 of 2020 in C.P. (IB) No. 277-7-HDB-2019

> NCLT judgment dated 2020-11-25. Citation: TCN-2020-NCLT-00208. The case involves an application (IA No.3 of 2020) filed by the Resolution Professional in…

- **Court:** NCLT
- **Order date:** 25 Nov 2020
- **Citation:** TCN-2020-NCLT-00208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/om-shakthi-renergies-limited-ia-no-03-of-2020-in-cp-ib-no-277-7-hdb-2019-6292d699

## Summary

### Background

The case involves an application (IA No.3 of 2020) filed by the Resolution Professional in CP(IB) No.277/9/HDB/2019 under sections 33 and 34 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order for liquidation of the Corporate Debtor, Om Shakti Renergies. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 16.09.2019, and Shri Chillale Rajesh was appointed as the Interim Resolution Professional (IRP) and later as Resolution Professional. A public announcement for CIRP initiation was made on 20.09.2019. An appeal against the admission order was dismissed by the NCLAT on 07.02.2020. The Resolution Professional filed memos with liquidation value and valuation reports of the Corporate Debtor. The Committee of Creditors

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## Facts

Om Shakti Renergies Limited was undergoing Corporate Insolvency Resolution Process (CIRP) under CP(IB) No.277/9/HDB/2019. The petition was admitted on 16.09.2019, and Shri Chillale Rajesh was appointed as the Interim Resolution Professional (IRP) and later as Resolution Professional. A public announcement for CIRP initiation was made on 20.09.2019. An appeal against the admission order was dismissed by the NCLAT on 07.02.2020. The Resolution Professional filed memos with liquidation value and valuation reports of the Corporate Debtor. The Committee of Creditors (CoC) decided for liquidation based on a Techno Economic Viability Report dated 31.10.2019, which indicated that finding purchasers for the plant equipment was difficult and the existing tariff structure would

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Om Shakti …

**Ratio:** Section 33 of the IBC, 2016, allows the Adjudicating Authority to order liquidation if no

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received and the CoC had

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** The Adjudicating Authority applied Section 33 to the facts of the case, where

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Respondents:** Om Shakti…; OM Shakti…

## Timeline

- **2019-09-16 — Admission in…**: The Tribunal admitted the petition, allowing the Corporate Debtor to Corporate Insolvency…
- **2019-09-20 — Public Annou…**: Resolution Professional issued public…

## 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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