# In the matter of Sunil Hitech Engineers Ltd. MA 2161-2019 in CP(IB)2295(MB)-2018

> NCLT judgment dated 2019-06-25. Citation: TCN-2019-NCLT-02789. The case involves MA 2161/2019 filed under Section 33(1)(a) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Jun 2019
- **Citation:** TCN-2019-NCLT-02789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunil-hitech-engineers-ltd-ma-2161-2019-in-cpib2295mb-2018-d9655101

## Summary

### Background

The case involves MA 2161/2019 filed under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Sunil Hitech Engineers Ltd, the Corporate Debtor. The application was filed by the Resolution Professional, Ashish Arjunkumar Rathi, after the Committee of Creditors (CoC) failed to approve any resolution plan within the statutory period of 270 days. The CIRP was initiated based on a petition filed under Section 7, which was admitted on 2018-09-10. During the CIRP, eleven meetings of the CoC took place. The 10th CoC meeting discussed a resolution plan from the Employee Trust, but it was found to be non-compliant due to several infirmities, including an unsigned plan, non-submission of EMD, and failure to meet net worth criteria. No resolution

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## Facts

American Express Banking Corporation initiated Corporate Insolvency Resolution Process (CIRP) against Sunil Hitech Engineers Ltd. The CIRP was initiated based on a petition filed under Section 7 of the Insolvency and Bankruptcy Code, which was admitted on 2018-09-10. Ashish Arjunkumar Rathi was appointed as the Resolution Professional (RP). During the CIRP, eleven meetings of the Committee of Creditors (CoC) took place. In the 10th CoC meeting, a resolution plan from the Employee Trust was discussed but deemed non-compliant due to various deficiencies, including an unsigned plan, non-submission of Earnest Money Deposit (EMD), and failure to meet net worth criteria. The statutory period of 270 days for the CIRP ended on 2019-06-07, and no resolution plan was approved.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1)(a) of the …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The court reasoned that the statutory period of 270 days had ended, and no resolution

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if no resolution plan is approved

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**Application:** In this case, the statutory period of 270 days had expired, and no resolution

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Ashish Arjunkumar…
- **Respondents:** Sunil Hitech…; American Express…
- **Advocates:** Rajesh…

## Timeline

- **2018-09-10 — Section 7 Petition…**: Petition filed under section 7 of the Insolvency and Bankruptcy Code was admitted by the…
- **2018-10-06 — First CoC M…**: First meeting of the Committee of Creditors (CoC) convened by the Interim Resolution…

## 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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