# In the matter of VCRM Petrochemicals  Pvt. Ltd. IA-4667-2020 in (IB) 718 (ND)-2019

> NCLT judgment dated 2020-12-23. Citation: TCN-2020-NCLT-00022. The case pertains to the insolvency resolution process of VCRM Petrochemicals Private Ltd.…

- **Court:** NCLT
- **Order date:** 23 Dec 2020
- **Citation:** TCN-2020-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vcrm-petrochemicals-pvt-ltd-ia-4667-2020-in-ib-718-nd-2019-f675e2a4

## Summary

### Background

The case pertains to the insolvency resolution process of VCRM Petrochemicals Private Ltd. initiated upon a petition filed by GP Petroleum Limited, an operational creditor. The corporate insolvency resolution process (CIRP) was initiated on 2019-09-27. Mr. Deepak Bansal was appointed as the Interim Resolution Professional. A public announcement was made, and UCO Bank, Punjabi Bagh Branch, New Delhi, submitted its claim as the sole financial creditor. The Committee of Creditors (CoC) was formed, and the Resolution Professional invited Expression of Interest from prospective Resolution Applicants. However, due to the specialized nature of the business and later due to the impact of COVID-19, no viable resolution plan was received. The CoC, with 100% voting share,

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## Facts

1. Insolvency Resolution Process initiated against VCRM Petrochemicals Private Ltd. on 2019-09-27.
2. Mr. Deepak Bansal appointed as Interim Resolution Professional.
3. Public announcement made, and UCO Bank submitted a claim as the sole financial creditor.
4. Expression of Interest invited, but no viable resolution plan received.
5. The moratorium period and the CIRP period of 180 days expired on 2020-03-25.
6. The Adjudicating Authority directed the Resolution Professional to conduct a fresh CoC meeting on 2020-09-14.
7. CoC meetings held on 2020-09-19 and 2020-09-28, where the decision to liquidate was taken.
8. CoC members with 100% voting share resolved to liquidate the Corporate Debtor.
9. The Resolution Professional filed an application under Section 33(2) of the IBC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated under Section 33 of the Insolvency and Bankruptcy …

**Ratio:** Section 33 of the IBC allows the Adjudicating Authority to pass a liquidation order if no

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**Reasoning:** The CoC, with 100% voting share, resolved to liquidate the Corporate Debtor due to the

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** In this case, the CoC's decision, coupled with the absence of a resolution

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; Narender Kumar…
- **Appellants:** GP Petroleums…
- **Respondents:** VCRM PETROCHEMICAL…; AJAY GOEL…

## Timeline

- **2019-09-27 — CIRP Init…**: Insolvency Resolution Process initiated…
- **2019-10-25 — Public Annou…**: Public announcement made…

## 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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