# In the matter of Bhowanipur Engineering Private Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02084. The case involves an application for the liquidation of Bhowanipur Engineering Private Limited.…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhowanipur-engineering-private-limited-c8a58480

## Summary

### Background

The case involves an application for the liquidation of Bhowanipur Engineering Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on March 16, 2020, following a petition by Rajendra Kumar Singhania, the Operational Creditor. Initially, Sushil Kumar Dokania was appointed as the Interim Resolution Professional (IRP), but he declined the role. Subsequently, Sandip Kumar Mitra was appointed but also showed unwillingness. Finally, Rajesh Kumar Aggarwal was appointed as IRP on January 31, 2022. The Committee of Creditors (CoC), including Indian Bank, was formed. The CoC rejected the appointment of IRP as RP and did not propose a new RP. After several meetings, the CoC approved the liquidation of the Corporate Debtor with a 100% voting share.

## Facts

Rajendra Kumar Singhania, an Operational Creditor, filed a petition against Bhowanipur Engineering Private Limited, leading to the initiation of CIRP on March 16, 2020. Several IRPs were appointed and subsequently unwilling to continue. Rajesh Kumar Aggarwal was eventually appointed as IRP. The Committee of Creditors (CoC) was formed, including Indian Bank. The CoC rejected the appointment of the IRP as RP and did not propose a new RP. The CIRP period of 180 days concluded on July 29, 2022. Eventually, the CoC approved the liquidation of Bhowanipur Engineering Private Limited with 100% voting share on November 15, 2022. The IRP then filed an application for liquidation, citing the lack of resolution scope. This application was approved by the NCLT, leading to the order

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Bhowanipur Engineering Private …

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

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**Reasoning:** The court considered the submission that the CoC had approved the liquidation with a 100%

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**Interpretation:** Section 33(2) of the IBC provides a clear framework for liquidation when the

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**Application:** In this case, the CoC's 100% approval for liquidation satisfied the requirement

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Rajendra Kumar…
- **Respondents:** Bhowanipur…; Indian…

## Timeline

- **2020-03-16 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) initiated against Bhowanipur Engineering…
- **2022-01-05 — Appointment…**: Mr. Sandip Kumar Mitra…

## 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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