# 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-00612. 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-00612
- **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-acdcd5f4

## 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 meeting, decided 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 on 29.03.2019. B. Santosh Babu was appointed as the Interim Resolution Professional (IRP). The IRP received one claim from the Financial Creditor, Bank of Baroda, and two claims from Operational Creditors, including Vivek Bansal. The CoC, in its meeting on 06.05.2019, unanimously resolved to liquidate the Corporate Debtor due to non-cooperation from the Suspended Directors and the uncertain status of the Corporate Debtor's assets. The Financial Creditor preferred liquidation. The IRP sought payment of

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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 Insolvency and Bankruptcy Code (IBC), 2016, as amended, stipulates

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**Reasoning:** The CoC, in its second meeting held on 06.05.2019, unanimously resolved to liquidate the

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

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**Application:** In this case, the CoC unanimously resolved to liquidate the Corporate Debtor.

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## Parties

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

## Timeline

- **2019-03-29 — Admission o…**: The Adjudicating Authority admitted the CP(IB)No.620/9/HDB/2018 under Section 9 of the I…
- **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 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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