# In the matter of Tejaswini Engineering Pvt. Ltd. IA(IBC)481-2021 in CP(IB) No. 205-7-HDB-2020

> NCLT judgment dated 2021-12-30. Citation: TCN-2021-NCLT-00009. The case involves an application filed by the Resolution Professional of Tejaswini Engineering…

- **Court:** NCLT
- **Order date:** 30 Dec 2021
- **Citation:** TCN-2021-NCLT-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tejaswini-engineering-pvt-ltd-iaibc481-2021-in-cpib-no-205-7-hdb-2020-0911d7f3

## Summary

### Background

The case involves an application filed by the Resolution Professional of Tejaswini Engineering Pvt Ltd, the Corporate Debtor, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of liquidation due to the absence of a resolution plan. The insolvency petition was originally filed by the Financial Creditor, BRS Enterprises & Trading Limited, under Section 7 of the Code, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Tejaswini Engineering Pvt Ltd. An Interim Resolution Professional (IRP) was initially appointed, later replaced by Ms. M Vazra Laxmi.

## Facts

BRS Enterprises & Trading Ltd, the Financial Creditor, initiated insolvency proceedings against Tejaswini Engineering Pvt Ltd, the Corporate Debtor, under Section 7 of the IBC. The CIRP was initiated on 2021-03-01. An IRP was appointed and subsequently replaced by Ms. M Vazra Laxmi as the Resolution Professional. During the CIRP, no resolution plan was approved. The CoC decided to liquidate the Corporate Debtor, noting that the liquidation value of the financial assets was zero. The Resolution Professional then filed an application under Section 33(2) of the IBC for liquidation. The Corporate Debtor has no immovable assets or plant and machineries available.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Tejaswini Engineering Pvt Ltd, …

**Ratio:** The Adjudicating Authority (NCLT) is obligated to initiate the liquidation process under

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**Reasoning:** The court relied on the Supreme Court's decision in K. Sashidhar vs. Indian Overseas

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**Interpretation:** Section 33(2) of the IBC mandates liquidation when a resolution plan is not

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**Application:** Since no resolution plan was approved during the CIRP, and the CoC resolved in

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** M/s. Tejaswini…
- **Respondents:** Tejaswini…; M/s. BRS Enterpris…

## Timeline

- **2021-03-01 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor…
- **2021-04-24 — IRP Repla…**: Ms. M Vazra Laxmi appointed as the Resolution Professional, replacing the initial IRP,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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