# In the matter of Rustogi Impex Pvt. Ltd. Item No. 128 (IB)-77(PB)-2018

> NCLT judgment dated 2018-11-29. Citation: TCN-2018-NCLT-00260. The case pertains to an application under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 29 Nov 2018
- **Citation:** TCN-2018-NCLT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rustogi-impex-pvt-ltd-item-no-128-ib-77pb-2018-18011f38

## Summary

### Background

The case pertains to an application under Section 33 of the Insolvency and Bankruptcy Code filed by Asset Reconstruction Co. (India) Limited (ARCL) through its Resolution Professional (RP). ARCL, as the sole financial creditor, acquired the assets of the corporate debtor via an assignment agreement. The initial petition was admitted on 2018-05-10, with the initial 180-day period expiring on 2018-11-06. The total debt owed by the corporate debtor is Rs. 126.71 crores. The expression of interest was floated on 2018-07-30, but no resolution plan applicant came forward. The Committee of Creditors (CoC), consisting solely of ARCL, decided to issue another advertisement, which was repeated on 2018-08-16.

## Facts

Asset Reconstruction Co. (India) Limited (ARCL) initiated insolvency proceedings against Rustogi Impex Pvt. Ltd. under Section 33 of the Insolvency and Bankruptcy Code. ARCL is the sole financial creditor, having acquired the corporate debtor's assets through an assignment agreement. The initial petition was admitted on 2018-05-10, with the 180-day period ending on 2018-11-06. The total debt owed by the corporate debtor is Rs. 126.71 crores. An expression of interest was floated on 2018-07-30, but no resolution plan applicant came forward. The Committee of Creditors (CoC), consisting only of ARCL, decided to issue another advertisement, which was repeated on 2018-08-16. The court found the public notice inadequate. The liquidation value is Rs. 8,57,40,089/-.

## Issues and analysis

### Issue 1: Whether the public notice issued by the Resolution Professional was adequate to attract potential …

**Ratio:** The ratio is that public notices must be sufficiently prominent and widely circulated to

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**Reasoning:** The court reasoned that the initial public notice was placed in an insignificant portion

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**Interpretation:** The interpretation is that public notices must be designed to effectively reach

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**Application:** The court applied this ratio to the facts by finding the initial public notice

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Rustogi Impex…

## Timeline

- **2018-05-10 — Petition Ad…**: The initial petition…
- **2018-07-30 — Expression of Interest…**: An expression of interest was floated, but no…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/rustogi-impex-pvt-ltd-item-no-128-ib-77pb-2018-18011f38