# In the matter of Sunil Hitech Engineers Limited IA No. 2391 of 2020 in CP (IB) 2295-MB-2018

> NCLT judgment dated 2021-05-27. Citation: TCN-2021-NCLT-02092. The case involves an application by the liquidator of Sunil Hitech Engineers Ltd., the…

- **Court:** NCLT
- **Order date:** 27 May 2021
- **Citation:** TCN-2021-NCLT-02092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunil-hitech-engineers-limited-ia-no-2391-of-2020-in-cp-ib-2295-mb-2018-1752dca9

## Summary

### Background

The case involves an application by the liquidator of Sunil Hitech Engineers Ltd., the Corporate Debtor, seeking approval from the National Company Law Tribunal (NCLT) to initiate suits and other legal proceedings on behalf of the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2018-09-10, and subsequently, liquidation was ordered on 2019-06-25. The Corporate Debtor, an Engineering, Procurement, and Construction (EPC) company, had various disputes arising from different projects executed, leading to the need for arbitration and legal recourse.

## Facts

Sunil Hitech Engineers Ltd. (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP) on 2018-09-10. Mr. Ashish Rathi was appointed as the Resolution Professional (RP). Due to the absence of a resolution plan, the RP filed an application for liquidation, which was ordered by the Tribunal on 2019-06-25, and the applicant was appointed as the liquidator. The Corporate Debtor, an EPC company, faced disputes related to various projects, resulting in outstanding payments from clients like L&T, Gammon India, NTECL, and BHEL. The liquidator sought permission to initiate arbitration and other legal proceedings to recover these outstanding amounts. The outstanding amounts are substantial, with L&T owing ₹4443.68 Lakhs, Gammon India owing

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## Issues and analysis

### Issue 1: Whether the liquidator of a Corporate Debtor can initiate suits and other legal proceedings on …

**Ratio:** Section 33(5) of the Insolvency and Bankruptcy Code, 2016, allows the liquidator to

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**Reasoning:** The Tribunal considered the express provision of Section 33(5) of the Code, which clearly

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**Interpretation:** Section 33(5) is interpreted to mean that the liquidator's power to initiate

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**Application:** In this case, the liquidator sought approval to initiate legal proceedings

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Avil Menezes,…
- **Respondents:** Sunil Hitech…; American Express…

## Timeline

- **2018-09-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Sunil Hitech Engineers…
- **2019-06-25 — Liquidation…**: Tribunal ordered liquidation of the Company and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(5) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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