# In the matter of Bevcon Wayors Private Limited IA No. 695 of 2023 in CP (IB) No. 493-9-HDB-2018

> NCLT judgment dated 2023-05-22. Citation: TCN-2023-NCLT-03240. The case involves an application filed by the Resolution Professional under Section 33(1)(a)…

- **Court:** NCLT
- **Order date:** 22 May 2023
- **Citation:** TCN-2023-NCLT-03240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bevcon-wayors-private-limited-ia-no-695-of-2023-in-cp-ib-no-493-9-hdb-2018-4bb5d227

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(1)(a) read with Section 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Bevcon Wayors Private Limited. The Tribunal had previously admitted a petition filed by Ardee Hi-Tech Private Limited/Operational Creditor, initiating the Corporate Insolvency Resolution Process (CIRP). Sistla Manjula was initially appointed as Interim Resolution Professional, later replaced by the current applicant. The matter was taken to the High Court of Telangana, where the CIRP was initially stayed but later vacated. Despite receiving interest from three Prospective Resolution Applicants (PRAs), including the Promoter of the Corporate Debtor, the resolution plans were rejected.

## Facts

Ardee Hi-Tech Private Limited, an operational creditor, filed a petition against Bevcon Wayors Private Limited, the corporate debtor, which was admitted by the NCLT, initiating the Corporate Insolvency Resolution Process (CIRP). Sistla Manjula was appointed as the Interim Resolution Professional (IRP) and later replaced by the Applicant. The CIRP was stayed by the High Court of Telangana but subsequently vacated. The Resolution Professional received interest from three Prospective Resolution Applicants (PRAs), including the Promoter of the Corporate Debtor, Mr. Y. Srinivas Reddy Yadiki. The resolution plan submitted by the Promoter was deliberated in the 8th and 10th CoC meetings. The revised resolution plan amount of Rs. 21.46 crores was less than the liquidation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of M/s. Bevcon Wayors Private …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Committee of Creditors (CoC) unanimously resolved to liquidate the Corporate Debtor

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**Interpretation:** Section 33(1)(a) provides a clear condition for liquidation when no viable

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**Application:** In this case, the CoC rejected the resolution plans and unanimously voted for

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Venkata Narsinga…
- **Respondents:** Bevcon Wayors…
- **Advocates:** Raja Shekar Rao…

## Timeline

- **2018-01-01 — CP (IB) No. 493/9/HDB/20…**: Filing of CP (IB) No.…
- **2022-04-19 — Admission of…**: Tribunal admitted the Petition filed by M/s Ardee Hi-Tech Private Limited/Operational…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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