# In the matter of Berial Engineers Pvt. Ltd. IA (IBC) No. 16-GB-2022 in CP (IB) No. 14-GB-2021

> NCLT judgment dated 2022-04-08. Citation: TCN-2022-NCLT-03306. The Resolution Professional (RP) filed an application seeking liquidation of the Corporate…

- **Court:** NCLT
- **Order date:** 8 Apr 2022
- **Citation:** TCN-2022-NCLT-03306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/berial-engineers-pvt-ltd-ia-ibc-no-16-gb-2022-in-cp-ib-no-14-gb-2021-6dfa9ae6

## Summary

### Background

The Resolution Professional (RP) filed an application seeking liquidation of the Corporate Debtor, Berial Engineers Pvt. Ltd., based on the instructions of the Committee of Creditors (CoC). The application was filed because the Corporate Debtor had no business activity. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on December 10, 2021, following a petition filed by Tata Hitachi Construction Machinery Company Private Limited ('Operational Creditor') under Section 9 of the Insolvency and Bankruptcy Code, 2016. Mr. Purshotam Gaggar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional.

## Facts

Tata Hitachi Construction Machinery Company Private Limited, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Berial Engineers Pvt. Ltd., the Corporate Debtor. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) on December 10, 2021, and appointed Mr. Purshotam Gaggar as the Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). The RP published a public announcement on January 8, 2022. The IRP received two claims, one from UCO Bank (Financial Creditor) for Rs. 9,79,26,620.58 and another from Tata Hitachi Construction Machinery Co. Pvt. Ltd (Operational Creditor) for Rs. 13,28,79,360.00. UCO Bank, being the sole financial creditor,

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code empowers the Adjudicating Authority

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**Reasoning:** The court considered the averments made by the RP, the minutes of the CoC meeting, and

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a corporate debtor

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**Application:** In this case, the CoC, consisting solely of UCO Bank, approved the liquidation

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## Parties

- **Judges:** Rohit K…; Prasanta Kumar…; +1 more
- **Respondents:** Berial Engineers…

## Timeline

- **2021-12-10 — Initiation…**: The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP)…
- **2022-01-08 — Public Annou…**: The Interim Resolution Professional (IRP) published a public announcement on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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