# In the matter of Bengal India Global Infrastructure Limited IA (I.B.C)- 240 (KB) 2022 in C.P. (IB)-516 (KB)-2018

> NCLT judgment dated 2022-05-06. Citation: TCN-2022-NCLT-02831. The case involves an application filed by the Liquidator under Section 54(1) of the Insolvency…

- **Court:** NCLT
- **Order date:** 6 May 2022
- **Citation:** TCN-2022-NCLT-02831
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bengal-india-global-infrastructure-limited-ia-ibc-240-kb-2022-in-cp-ib-516-kb-20-97dc5cc5

## Summary

### Background

The case involves an application filed by the Liquidator under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016, seeking an order for the dissolution of the Corporate Debtor, Bengal India Global Infrastructure Limited, which is now in liquidation. The Corporate Debtor was admitted into CIRP on October 11, 2018. An application under section 33 of the Insolvency and Bankruptcy Code, 2016 was filed seeking an order of liquidation of the Corporate Debtor. The Adjudicating Authority passed an order on 17.05.2019 granting an order of Liquidation of the Corporate Debtor under Section 33(5) of Insolvency and Bankruptcy Code, 2016. Sanjay Kumar Agarwal was appointed as the liquidator.

## Facts

The Corporate Debtor, Bengal India Global Infrastructure Limited, was admitted into CIRP on October 11, 2018. No resolution plan was approved during the CIRP period, leading to an order for liquidation on 17.05.2019. Sanjay Kumar Agarwal was appointed as the liquidator. The liquidator took steps to facilitate the liquidation proceedings, including issuing public announcements and appointing valuers. The Corporate Debtor had limited assets, primarily book debts, with an average liquidation value of approximately Rs. 1.50 Lakh. Recovery from book debts was hindered by the COVID-19 pandemic and a lack of stakeholder willingness to contribute to liquidation costs. The liquidator proposed the assignment of book debts as 'Not Readily Realizable Assets' (NRRA), which was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Bengal India Global Infrastructure Limited, should be dissolved under …

**Ratio:** Section 54(1) of the Insolvency and Bankruptcy Code, 2016 allows the liquidator to apply

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**Reasoning:** The court considered the facts presented by the liquidator, including the completion of

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**Interpretation:** Section 54(1) and Regulation 45 provide a framework for the orderly dissolution

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**Application:** In this case, the liquidator had completed the liquidation process, assigned

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Sanjay Kumar…
- **Respondents:** Bengal India…; Jai Balaji…

## Timeline

- **2018-10-11 — CIRP Commen…**: Corporate Debtor admitted to CIRP in…
- **2019-05-17 — Liquidation…**: Adjudicating Authority passed an order granting an order of Liquidation of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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