# In the matter of Tech Megacorp International Private Limited MA-5-IB-2018 In TCP-114-IB-CB-2017

> NCLT judgment dated 2018-06-06. Citation: TCN-2018-NCLT-01324. The case involves an application for liquidation of the Corporate Debtor, M/s. Tech Megacorp…

- **Court:** NCLT
- **Order date:** 6 Jun 2018
- **Citation:** TCN-2018-NCLT-01324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tech-megacorp-international-private-limited-ma-5-ib-2018-in-tcp-114-ib-cb-2017-1cf54d7b

## Summary

### Background

The case involves an application for liquidation of the Corporate Debtor, M/s. Tech Megacorp International Private Limited. The original petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by the State Bank of India, the Financial Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Shah Brothers Ispat Private Limited, the Corporate Debtor. The application was admitted, and an Interim Resolution Professional was appointed. The Committee of Creditors (CoC) was formed, but no viable resolution plan could be evolved. Consequently, a resolution was proposed for the liquidation of the Corporate Debtor.

## Facts

The State Bank of India, as the Financial Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against M/s. Shah Brothers Ispat Private Limited, the Corporate Debtor, by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted, and an Interim Resolution Professional was appointed. The Corporate Debtor lacked essential resources such as an office, directors, staff, and records, hindering the formulation of a resolution plan. The Financial Creditor's claim amounted to Rs. 34,35,48,009.82, while the Operational Creditor's claim was Rs. 5,42,60,435. The Committee of Creditors (CoC) was unable to evolve a viable resolution plan, leading to a proposal for liquidation. The sole financial creditor (SBI)

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be approved given the …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016, allows the Adjudicating Authority to order

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**Reasoning:** The Adjudicating Authority considered the facts and circumstances, including the lack of

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**Interpretation:** The I&B Code provides for liquidation as a recourse when the CIRP fails to

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**Application:** Given the absence of a viable resolution plan and the recommendation of the

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Shri.V. M…
- **Respondents:** M/s. Tech…; M/s. State Bank…

## Timeline

- **2017-08-16 — Adjudicating Authority…**: Adjudicating Authority appointed Interim Resolution Professional vide Order dated…
- **2018-03-09 — Applicatio…**: Matter under consideration is an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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