# In the matter of Basic India Limited C.A. No. 1233-2019 in (IB) 397 (PB)-2018

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04029. The case involves an application filed by the Resolution Professional, Mr. Anup Sood, under…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/basic-india-limited-ca-no-1233-2019-in-ib-397-pb-2018-2c994956

## Summary

### Background

The case involves an application filed by the Resolution Professional, Mr. Anup Sood, under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the liquidation process against the Corporate Debtor, Basic India Limited. Initially, an application was filed by the Financial Creditor, Bank of India, under Section 7 of IBC for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 12.10.2018, and Mr. Anup Sood was appointed as the Interim Resolution Professional (IRP).

## Facts

The Financial Creditor, Bank of India, initiated CIRP against the Corporate Debtor, Basic India Limited, under Section 7 of IBC. The application was admitted on 2018-10-12, and Mr. Anup Sood was appointed as the Interim Resolution Professional (IRP). Seven Expressions of Interest (EoIs) were received, but only one Prospective Resolution Applicant (PRA), M/s. Jatalia Global Ventures, qualified. However, no resolution plan was received from the PRA within the stipulated time. The Committee of Creditors (CoC) approved the liquidation process with a 100% vote in the 8th CoC Meeting held on 2019-05-29. The Ex-Managing Director, Mr. Athar Zia, objected to the liquidation, alleging bias on the part of the Resolution Professional and deliberate pushing of the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application for liquidation under …

**Ratio:** Section 33(1) of the IBC allows for the initiation of liquidation proceedings when a

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**Reasoning:** The CoC approved the liquidation process with a 100% vote after no viable resolution plan

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**Interpretation:** Section 33(1) provides the legal basis for initiating liquidation when CIRP

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**Application:** The CoC's unanimous decision, coupled with the absence of a resolution plan,

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## Parties

- **Judges:** SH. BHASKARA…; Sh. Hemant Kumar…
- **Appellants:** Anup…
- **Respondents:** Basic India…; Athar…

## Timeline

- **2018-10-12 — CIRP Admi…**: Application under Section 7 of IBC admitted,…
- **2018-10-18 — Management Ta…**: Applicant took over the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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