# In the matter of BEML Midwest Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01044. 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-01044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/beml-midwest-limited-bf33dee6

## 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 of the Corporate Debtor, M/s. BEML Midwest Private Limited (Under CIRP). The Corporate Insolvency Resolution Process (CIRP) was initiated earlier vide orders dated 26.09.2022. The IRP made public announcements, constituted a Committee of Creditors (COC), and sought cooperation from the suspended directors, which was not extended. The COC, with 100% voting share, decided to liquidate the Corporate Debtor due to its financial condition and lack of assets.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. BEML Midwest Private Limited on 26.09.2022. Ms. Padma Priyanka Vangala was appointed as the Resolution Professional. Public announcements were made, and a Committee of Creditors (COC) was constituted. The suspended directors of the Corporate Debtor did not extend cooperation to the RP. The company had not prepared its financial statements, and there were disputes between joint venture partners. A transaction audit revealed irregularities, and recovery notices were issued. The COC, with 100% voting share, decided to liquidate the Corporate Debtor due to its financial condition and the lack of assets. The CIRP period was coming to an end on 09.08.2023. The RP filed an application seeking

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## Issues and analysis

### Issue 1: Whether the application filed under Section 33(2) read with Section 60(5) of the Insolvency and …

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

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

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

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**Application:** The COC's decision, based on the Corporate Debtor's financial condition and the

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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…**: Adjudicating Authority ordered initiation of Corporate Insolvency Resolution Process in…
- **2022-10-05 — Public Annou…**: Applicant made 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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