# In the matter of BEML Midwest Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01040. The case pertains to an application filed under Section 33(2) read with Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/beml-midwest-limited-47e14c1e

## Summary

### Background

The case pertains to an application filed under Section 33(2) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of liquidation for M/s. BEML Midwest Private Limited (Under CIRP). The Corporate Insolvency Resolution Process (CIRP) was initiated on 26.09.2022. The resolution professional (RP) was appointed and a Committee of Creditors (COC) was constituted. However, the suspended directors did not cooperate, and the company's financial statements were not audited. The COC decided to liquidate the corporate debtor due to the absence of assets for sale and the unavailability of audited books of accounts.

## Facts

M/s. BEML Midwest Private Limited (Under CIRP) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 26.09.2022. Ms. Padma Priyanka Vangala was appointed as the Resolution Professional. The CIRP period was extended until 09.08.2023. The suspended directors of the company did not cooperate with the RP, failing to provide necessary documents and information. The company's financial statements were not audited, and there were disputes between joint venture partners. A transaction audit revealed irregularities, including payments to suppliers without corresponding supplies. The Committee of Creditors (COC) decided to liquidate the company due to the lack of assets for sale and the unavailability of audited books of accounts. The RP filed an application

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. BEML Midwest Limited, should be liquidated under Section 33(2) …

**Ratio:** Section 33(2) of the IBC allows for the initiation of liquidation proceedings if the

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**Reasoning:** The COC, constituting 100% voting share, decided to liquidate the Corporate Debtor due to

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when the CIRP

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**Application:** Given the COC's decision and the circumstances of the case, the Tribunal

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Action Group…
- **Respondents:** BEML Midwest…; M/s. BEML Midwest…

## Timeline

- **2022-09-26 — Initiation…**: The Adjudicating Authority ordered the initiation of the Corporate Insolvency Resolution…
- **2022-10-05 — Public Annou…**: The applicant made a public announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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