# In the matter of Smartec Build Systems Private Limited IA No.479-2019 in CP (IB) No. 620-9-HDB-2018

> NCLT judgment dated 2019-11-13. Citation: TCN-2019-NCLT-00617. The case involves an application (IA No.479/2019) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLT-00617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/smartec-build-systems-private-limited-ia-no479-2019-in-cp-ib-no-620-9-hdb-2018-13f3feb5

## Summary

### Background

The case involves an application (IA No.479/2019) filed by the Interim Resolution Professional (IRP) under Section 33 of the IB Code, 2016, seeking liquidation of the Corporate Debtor, Smartec Build Systems Private Limited. Another application (IA No.540/2019) was filed seeking direction for payment of fees and expenses to the IRP. The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application under Section 9 of the I&B Code, 2016, filed by an Operational Creditor, Shri Vivek Bansal, Prop. Shri Sai Steel Traders. The CoC, in its second meeting, unanimously resolved to liquidate the Corporate Debtor due to non-cooperation of the suspended directors and the unascertainable position of the fixed assets.

## Facts

Shri Vivek Bansal, an Operational Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Smartec Build Systems Private Limited (Corporate Debtor) under Section 9 of the I&B Code, 2016. The Adjudicating Authority admitted the application. B. Santosh Babu was appointed as the Interim Resolution Professional (IRP). The IRP convened meetings of the Committee of Creditors (CoC). The Financial Creditor, Bank of Baroda, expressed its view that continuing the CIRP was not worthwhile due to the non-cooperation of the suspended directors and the uncertain position of the Corporate Debtor's assets. The CoC, with 100% voting share, resolved to liquidate the Corporate Debtor before the confirmation of a resolution plan. The IRP sought payment of his fees

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor based on …

**Ratio:** Section 33(2) of the IBC, as amended, allows the Adjudicating Authority to order

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**Reasoning:** The Adjudicating Authority noted that the CoC, in its second meeting, unanimously

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**Interpretation:** Section 33(2) provides a mechanism for liquidation based on the CoC's decision,

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**Application:** The CoC, with 100% voting share, resolved to liquidate Smartec Build Systems

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** B.Santosh…
- **Respondents:** Smartec Build…; Mr.Syed…

## Timeline

- **2019-03-29 — Admission of…**: The Adjudicating Authority admitted the CP(IB)No.620/9/HDB/2018 under Section 9 of the…
- **2019-04-21 — Notice of First CoC…**: The IRP sent the notice and agenda of the first meeting of the CoC (to be held on…

## 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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