# In the matter of Bhagwan Motors Private Limited

> NCLT judgment dated 2023-09-01. Citation: TCN-2023-NCLT-01806. The case pertains to an application filed by the Resolution Professional (RP) of M/s Bhagwan…

- **Court:** NCLT
- **Order date:** 1 Sept 2023
- **Citation:** TCN-2023-NCLT-01806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhagwan-motors-private-limited-6f79813a

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of M/s Bhagwan Motors Private Limited under Section 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the liquidation process for the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application filed by the operational creditor, Harshad V. Vora, proprietor of M/s Utkarsh Steel Corporation, under Section 9 of the Code. The CIRP was admitted on 2019-06-21. An application was filed by the COC seeking replacement of the IRP, which was allowed on 2019-11-07, and the applicant was appointed as the RP.

## Facts

The operational creditor, Harshad V. Vora, proprietor of M/s Utkarsh Steel Corporation, initiated the Corporate Insolvency Resolution Process (CIRP) against M/s Bhagwan Motors Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP was admitted by the Adjudicating Authority on 2019-06-21. Initially, Mr. Rajesh Lohia was appointed as the Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (COC) filed an application to replace the IRP, which was approved on 2019-11-07, and the current applicant was appointed as the Resolution Professional (RP). The RP published an Expression of Interest (EOI) in Form-G on 2020-01-17, inviting resolution plans, with a deadline of 2020-02-01. However, no resolution plan was

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## Issues and analysis

### Issue 1: Whether the corporate debtor, M/s Bhagwan Motors Private Limited, should be put into liquidation …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The resolution professional published Form-G inviting resolution plans, but no plan was

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

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**Application:** Since no resolution plan was received for M/s Bhagwan Motors Private Limited,

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; KAUSHALENDRA…
- **Appellants:** Harshad V…
- **Respondents:** Bhagwan Motors…; Bhagwan Motors…

## Timeline

- **2019-06-21 — CIRP Admi…**: The Adjudicating Authority admitted the Corporate Insolvency Resolution Process (CIRP)…
- **2019-11-07 — IRP Repla…**: The Adjudicating Authority allowed the application to replace the Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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