# In the matter of Otto Projects Private Limited IA(IB) No. 312-KB-2021 In CP (IB) No.1136-KB-2018

> NCLT judgment dated 2021-04-07. Citation: TCN-2021-NCLT-02444. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 7 Apr 2021
- **Citation:** TCN-2021-NCLT-02444
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/otto-projects-private-limited-iaib-no-312-kb-2021-in-cp-ib-no1136-kb-2018-27be8c4a

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Otto Projects Private Limited, due to the absence of a viable Resolution Plan. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Calcutta Trading Centre, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority directed the initiation of CIRP and appointed an Interim Resolution Professional (IRP).

## Facts

Otto Projects Private Limited faced Corporate Insolvency Resolution Process (CIRP) following a petition by Calcutta Trading Centre, an Operational Creditor. An Interim Resolution Professional (IRP) was appointed, and a Committee of Creditors (CoC) was formed, consisting solely of Operational Creditors. The Corporate Debtor lacked liquid assets and the CoC was unwilling to infuse funds. Efforts to find a resolution plan failed, with no viable Expression of Interest (EoI) received. The CoC, with 99.07% voting share, decided to liquidate the Corporate Debtor. The Resolution Professional filed an application for liquidation, leading to the Adjudicating Authority ordering liquidation and appointing a Liquidator. The lack of liquid funds and the absence of a resolution plan

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Otto Projects Private Limited, …

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

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**Reasoning:** The court reasoned that no viable Resolution Plan was presented, and the CoC, with a

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when resolution efforts fail

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**Application:** The CoC's decision, supported by 99.07% voting share, met the threshold under

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## Parties

- **Judges:** Rajasekh…; Harish Chander…
- **Appellants:** Sankar Kumar…
- **Respondents:** Otto Projects…

## Timeline

- **2019-10-24 — Order for CIRP…**: The Adjudicating Authority ordered the initiation of the Corporate Insolvency Resolution…
- **2019-11-24 — Deadline for Submission…**: Creditors were invited to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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