# In the matter of Zed Fabs India Pvt. Ltd. I.A. No. 66 of 2021 in C.P.(IB)No. 133-BB-2017

> NCLT judgment dated 2021-03-11. Citation: TCN-2021-NCLT-02735. The case involves a Company Petition (CP (IB)No.133/BB/2017) filed by Khemka Plyland…

- **Court:** NCLT
- **Order date:** 11 Mar 2021
- **Citation:** TCN-2021-NCLT-02735
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zed-fabs-india-pvt-ltd-ia-no-66-of-2021-in-cpibno-133-bb-2017-d9606b58

## Summary

### Background

The case involves a Company Petition (CP (IB)No.133/BB/2017) filed by Khemka Plyland (Petitioner/Operational Creditor) under Section 9 of the IBC, 2016. The Adjudicating Authority admitted the petition on February 2, 2018, initiating CIRP, appointing an IRP, and imposing a moratorium. Subsequently, the Applicant was appointed as Resolution Professional and later as Liquidator of the Corporate Debtor. The Liquidator discovered fraudulent diversion of assets to group companies and filed an application under Section 66 of the Code. The Adjudicating Authority directed the RP to approach SFIO for further investigation. The liquidation process was initiated, and the Liquidator took steps to secure and sell the assets of the Corporate Debtor.

## Facts

Khemka Plyland filed a Company Petition (CP (IB)No.133/BB/2017) against Zed Fabs India Pvt. Ltd. under Section 9 of the IBC, 2016. The petition was admitted on February 2, 2018, initiating CIRP. An IRP was appointed, and a moratorium was imposed. The Applicant was appointed as Resolution Professional and later as Liquidator. The Liquidator discovered fraudulent diversion of assets to group companies and filed an application under Section 66 of the Code. The Adjudicating Authority directed the RP to approach SFIO for further investigation. The Liquidator visited the factory and found it locked for more than 3 years, with some machinery stolen. The Liquidator sold the remaining scrap items through e-auction. The liquidation process was completed, and the Liquidator

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor, M/s. Zed Fabs India Pvt. Ltd., has been …

**Ratio:** Section 54 of the IBC, 2016 states that where the assets of the Corporate Debtor have

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**Reasoning:** The Adjudicating Authority considered the facts presented by the Liquidator, including

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**Interpretation:** Section 54 of the IBC, 2016 provides the legal basis for the dissolution of a

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**Application:** In this case, the Liquidator made an application to the Adjudicating Authority

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Khemka Pl…
- **Respondents:** Zed Fabs India…

## Timeline

- **2017-01-01 — Filing of Company…**: Company Petition bearing C.P. (IB)No.133/BB/2017 filed by Khemka Plyland…
- **2018-02-02 — Admission of Company…**: The Adjudicating Authority admitted the petition, initiating CIRP, appointing IRP,…

## 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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