# In the matter of Zed Fabs India Private Limited I.A. No. 221-2018 in C.P. (IB) No. 133-BB-2017

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01355. The case involves I.A No.221 of 2018 in C.P. (IB) No.133/BB/2017 filed by Smt. R.Bhuvaneshwari,…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zed-fabs-india-private-limited-ia-no-221-2018-in-cp-ib-no-133-bb-2017-acf3b081

## Summary

### Background

The case involves I.A No.221 of 2018 in C.P. (IB) No.133/BB/2017 filed by Smt. R.Bhuvaneshwari, the Resolution Professional of Zed Fabs India Private Limited, seeking liquidation of the Corporate Debtor Company. The Corporate Debtor, Zed Fabs India Private Limited, was incorporated on 11.01.2011 and was engaged in the business of manufacturing and dealing in furniture and wood products, primarily catering to the furnishing requirements of its Group Companies. Initially, a Company Petition bearing C.P(IB) No.133/BB/2017 was filed by M/s.Khemka Plyland against Zed Fabs India Private Limited, which was admitted on 02.02.2018, initiating CIRP. Smt.Ramanathan Bhuvaneshwari was appointed as the Interim Resolution Professional. During the CIRP, the CoC decided to liquidate

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## Facts

M/s.Khemka Plyland filed a Company Petition C.P(IB) No.133/BB/2017 against M/s.Zed Fabs India Private Limited (Corporate Debtor) under Section 9 of the I&BC, 2016. The petition was admitted on 02.02.2018, initiating CIRP, and Smt.Ramanathan Bhuvaneshwari was appointed as Interim Resolution Professional. Zed Fabs India Private Limited was incorporated on 11.01.2011 and engaged in manufacturing and dealing in furniture and wood products, catering mainly to the furnishing requirements of its Group Companies. The Corporate Debtor has not been in business for the past 2 years. The Resolution Professional conducted CoC meetings, but the response from potential resolution applicants was limited to plant and machinery. The liquidation value of the plant and machinery is

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Zed Fabs India Private Limited, should be liquidated under Section 33 …

**Ratio:** Section 33 of the IBC, 2016 allows the Adjudicating Authority to order liquidation of the

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**Reasoning:** The CoC decided to liquidate the Corporate Debtor due to the lack of viable resolution

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**Interpretation:** Section 33 provides the legal basis for liquidating a corporate debtor when

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**Application:** In this case, the CoC's decision to liquidate was based on the limited value of

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Ramanathan…; RamanathanBhuvanes…
- **Respondents:** Zed Fabs India…; M/s.Zeb Fabs…

## Timeline

- **2011-01-11 — Incorporation of…**: Zed Fabs India Private…
- **2018-02-02 — Initiation…**: Company Petition filed by M/s.Khemka…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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