# In the matter of VB Power Pvt. Ltd. MA No. 2852-2019 in C.P. No. 2466-I&B-2018

> NCLT judgment dated 2019-12-04. Citation: TCN-2019-NCLT-00327. The Corporate Insolvency Resolution Process (CIRP) was initiated against V. B. Power Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 4 Dec 2019
- **Citation:** TCN-2019-NCLT-00327
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vb-power-pvt-ltd-ma-no-2852-2019-in-cp-no-2466-ib-2018-0ed36151

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against V. B. Power Pvt. Ltd. by the Adjudicating Authority based on a petition filed by the Operational Creditor, T.R. Steel Pvt. Ltd. Mr. Fanendra H. Munot was appointed as Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) resolved to appoint Mr. Fanendra H. Munot as Resolution Professional (RP). Public announcement was made, and Expression of Interest was invited. However, no resolution plan was received.

## Facts

T.R. Steel Pvt. Ltd., an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against V. B. Power Pvt. Ltd., the Corporate Debtor. The Adjudicating Authority approved the initiation on 2019-02-05. Fanendra H. Munot was appointed as Interim Resolution Professional (IRP) and later as Resolution Professional (RP). Public announcement was made on 2019-02-15, setting 2019-02-28 as the deadline for claim submissions. The State Bank of India was the sole financial creditor and constituted the CoC. The Corporate Debtor had no assets, so valuers were not appointed. An advertisement inviting Expression of Interest was issued on 2019-05-13, with a deadline of 2019-05-28. The CoC, with 100% voting rights, resolved to liquidate the company on 2019-08-13

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, V. B. Power Pvt. Ltd., should be liquidated due to the absence of a …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The CoC, holding 100% voting rights, resolved to liquidate the company because no

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**Interpretation:** Section 33 provides a mechanism for liquidation when resolution efforts fail.

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**Application:** Since no resolution plan was received for V. B. Power Pvt. Ltd., and the CoC

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Respondents:** V. B. Power Pvt.…

## Timeline

- **2019-02-05 — CIRP Init…**: Adjudicating Authority initiated…
- **2019-02-15 — Public Annou…**: Public announcement made in 'Financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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