# In the matter of Berial Engineers Pvt. Ltd. IA (IBC) No. 31-GB-2022 in C.P. (IB)No. 14-GB-2021

> NCLT judgment dated 2022-06-16. Citation: TCN-2022-NCLT-02215. The case pertains to an application filed under Section 54 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Jun 2022
- **Citation:** TCN-2022-NCLT-02215
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/berial-engineers-pvt-ltd-ia-ibc-no-31-gb-2022-in-cp-ibno-14-gb-2021-5b1fced5

## Summary

### Background

The case pertains to an application filed under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, for the dissolution of the Corporate Debtor, M/s Berial Engineers Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated against Tata Hitachi Construction Machinery Co. Pvt. Ltd. The Committee of Creditors (CoC) recommended liquidation due to the Corporate Debtor's lack of business activity since 2011, absence of assets, and unavailability of books of accounts and audited financials since 2009-10. The Hon'ble Tribunal ordered the commencement of liquidation on 08th April 2022 and appointed the applicant as the Liquidator.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Tata Hitachi Construction Machinery Co. Pvt. Ltd. via order dated 10th December 2021. Purshotam Gaggar was appointed as the Interim Resolution Professional (IRP). The IRP received two claims, one from UCO Bank (Rs. 9,79,26,620.58) and another from Tata Hitachi Construction Co. Pvt. Ltd. (Rs. 13,28,79,360.00). UCO Bank was the sole financial creditor and held 100% voting rights in the Committee of Creditors (CoC). The CoC recommended liquidation of the Corporate Debtor, M/s. Berial Engineers Pvt. Ltd., due to the absence of business activity since 2011, lack of assets, and unavailability of books of accounts and audited financials since 2009-10. The liquidation value of the corporate debtor was

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, M/s. Berial Engineers Pvt. Ltd., …

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

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**Reasoning:** The Hon'ble Tribunal reasoned that the Corporate Debtor had no commercial operation since

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**Interpretation:** Section 54(1) is interpreted to mean that dissolution is appropriate when the

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**Application:** In this case, the Tribunal applied the ratio by considering the factual

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## Parties

- **Judges:** RohitKa…; Prasanta Kumar…
- **Appellants:** Purshotam…
- **Respondents:** M/s. Berial…

## Timeline

- **2021-12-10 — Order for Commencement…**: The Hon'ble Tribunal ordered the commencement of the Corporate Insolvency Resolution…
- **2022-01-06 — Communication of NCLT…**: The order of the Hon'ble NCLT was communicated to the IRP by Tata Hitachi Construction…

## Legal provisions

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

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