# In the matter of Pier-One Constructions Pvt. Ltd. CA No. 501-(PB)-2018 in CP No. 532-2016

> NCLT judgment dated 2018-07-04. Citation: TCN-2018-NCLT-01203. The case pertains to an application filed by the Resolution Professional under Section 33(1) of…

- **Court:** NCLT
- **Order date:** 4 Jul 2018
- **Citation:** TCN-2018-NCLT-01203
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pier-one-constructions-pvt-ltd-ca-no-501-pb-2018-in-cp-no-532-2016-95c431a8

## Summary

### Background

The case pertains to an application filed by the Resolution Professional under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking a liquidation order for the Corporate Debtor, Pier-One Constructions Private Limited. The Committee of Creditors (CoC) concluded that resolution was not possible due to the Corporate Debtor's lack of operations and activities for the past three years. The whereabouts of the promoter are unknown, and there was little interest in taking over the company. The Operational Creditor, Variscon Engineering Services Pvt. Ltd., who had previously worked as a subcontractor, initially considered taking over the company but later changed their intentions.

## Facts

Variscon Engineering Services Pvt. Ltd. filed a Company Petition (No. 532/2016) against Pier-One Constructions Private Limited under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. Variscon Engineering Services Pvt. Ltd. is the Operational Creditor/Petitioner, and Pier-One Constructions Private Limited is the Corporate Debtor/Respondent. The Resolution Professional filed an application (C.A. No. 501(PB)/2018) seeking a liquidation order for the Corporate Debtor. The Committee of Creditors (CoC) determined that resolution was not possible due to the Corporate Debtor's lack of operations and assets for the past three years. The promoter's whereabouts are unknown, and there is little interest in taking over the company. The Operational Creditor initially

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33(1) of the Insolvency …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The court reasoned that the Committee of Creditors had good reasons for liquidation, as

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**Interpretation:** Section 33(1) is interpreted to mean that if a resolution plan is not viable,

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**Application:** The court applied this principle to the facts of the case, noting that the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Variscon Engineeri…
- **Respondents:** Pier-One Construct…

## Timeline

- **2016-01-01 — Company Petiti…**: Company Petition No. 532/2016 filed by Variscon Engineering Services Pvt. Ltd. against…
- **2018-04-07 — Order Del…**: Order delivered on 04.07.2018,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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