# In the matter of Varia Engineering Works Ltd. IA No. 362-2018 in C.P. (IB) No. 149-NCLT-AHM-2017

> NCLT judgment dated 2019-07-22. Citation: TCN-2019-NCLT-02381. The case involves an application (IA 362 of 2018) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 22 Jul 2019
- **Citation:** TCN-2019-NCLT-02381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varia-engineering-works-ltd-ia-no-362-2018-in-cp-ib-no-149-nclt-ahm-2017-a76bcc96

## Summary

### Background

The case involves an application (IA 362 of 2018) filed by the Resolution Professional (RP) under Section 33 of the Insolvency and Bankruptcy Code (IBC) seeking liquidation of the Corporate Debtor, Varia Engineering Works Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the RP was appointed. The Committee of Creditors (CoC) directed the Corporate Debtor to cooperate with the RP, but the RP faced non-cooperation in retrieving relevant information. Despite efforts to revive the company, no resolution plan was received even after extending the deadline. The CoC then resolved to file a liquidation application, which was approved by a majority voting share.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Varia Engineering Works Pvt. Ltd. The Resolution Professional (RP) was appointed and faced non-cooperation from the Corporate Debtor in retrieving relevant information. The Committee of Creditors (CoC) directed the Corporate Debtor to cooperate. The RP published advertisements seeking expressions of interest for a resolution plan, but no plan was received even after extending the deadline. The CIRP period expired. The CoC resolved to file a liquidation application under Section 33 of the IB Code, which was approved by a majority voting share. The RP filed IA 362 of 2018 seeking liquidation. The Adjudicating Authority observed that the CIRP had expired and that it was a fit case for liquidation.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the failure of the Corporate Insolvency …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of a

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**Reasoning:** The court reasoned that the CIRP had expired, and no resolution plan was received despite

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CIRP fails to produce

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**Application:** Since no resolution plan was received and the CIRP period had expired, the

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## Parties

- **Judges:** Manorama…
- **Appellants:** Ramubhai S.…
- **Respondents:** Varia Engineering…; Bank of B…
- **Advocates:** Kamya…; Harmish K…; +2 more

## Timeline

- **2017-12-21 — Admission of CP(IB)…**: CP(IB) 149/2017 was…
- **2018-01-23 — First Meeting of…**: The first meeting of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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