# In the matter of Petrolube India C.A.No. 295 & 297-C-III-ND-2019 in IB 343-ND-2017

> NCLT judgment dated 2019-09-23. Citation: TCN-2019-NCLT-01300. The application was preferred by the Resolution Professional (RP), Mr. Ashwani Kumar Gupta,…

- **Court:** NCLT
- **Order date:** 23 Sept 2019
- **Citation:** TCN-2019-NCLT-01300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/petrolube-india-cano-295-297-c-iii-nd-2019-in-ib-343-nd-2017-e1668647

## Summary

### Background

The application was preferred by the Resolution Professional (RP), Mr. Ashwani Kumar Gupta, seeking liquidation of the Corporate Debtor (CD) under Sections 33 and 34 of the Insolvency & Bankruptcy Code (IBC) 2016. The main company petition was admitted on 25.1.2018 at the instance of an Operational Creditor (OC), leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). Mr. Amar Nath Kukreja was appointed as the Interim Resolution Professional (IRP). A public announcement was issued on 7.2.2018, inviting claims from the creditors of the CD. The Committee of Creditors (COC) was constituted on 5.3.2018.

## Facts

Columbia Petrochem Pvt. Ltd. is the Corporate Debtor. R.G. Steels is the Operational Creditor. Petrolube India Limited is the Corporate Debtor. An application was filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor under Sections 33 and 34 of the Insolvency & Bankruptcy Code (IBC) 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated after the admission of the main company petition on 25.1.2018. The Committee of Creditors (COC) was constituted on 5.3.2018. The COC attempted to resolve the insolvency by reducing the net worth criteria and providing an opportunity to the promoter of the CD to submit a better Resolution Plan. The resolution plans submitted by the applicants did not meet the expectations of the COC,

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## Issues and analysis

### Issue 1: Whether the liquidation process should be initiated for the Corporate Debtor, considering the …

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

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**Reasoning:** The Tribunal noted that the CIRP period had expired and the COC had rejected the

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**Interpretation:** The IBC mandates that if a resolution plan is not approved within the

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**Application:** In this case, the CIRP period had expired, and the COC had rejected the

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## Parties

- **Judges:** Sh.R. Varad…; K.K. V…
- **Respondents:** Petrolube India…; R.G. St…
- **Advocates:** Sanjeev…; Prashant Tr…; +1 more

## Timeline

- **2018-01-25 — Admission of Company…**: The main company petition was admitted at the…
- **2018-02-07 — Public Annou…**: A public announcement was issued, inviting…

## Legal provisions

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

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