# In the matter of Bihar State Construction Corporation Limited IA(IBC)-954(KB)2021 in CP(IB)-720(KB)2017

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03750. The case involves an application (IA(IBC)/954(KB)2021) filed under section 33(1)(a) of the…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03750
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bihar-state-construction-corporation-limited-iaibc-954kb2021-in-cpib-720kb2017-caa81a92

## Summary

### Background

The case involves an application (IA(IBC)/954(KB)2021) filed under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP) of Bihar State Construction Corporation Limited, the Corporate Debtor, seeking liquidation. An earlier petition under section 10 of the IBC led to the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on 16/10/2019. Public announcements were made inviting claims from creditors. An appeal was filed by the Bihar State Construction Corporation Ltd. Employee Union against the CIRP order, which was eventually dismissed by the NCLAT on 19/09/2022. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor as no resolution plan was received and the

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## Facts

Bihar State Construction Corporation Limited (Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). Nitesh Kumar More was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. An appeal against the CIRP initiation was filed by the Bihar State Construction Corporation Ltd. Employee Union but was eventually dismissed by the NCLAT. The Committee of Creditors (CoC) held seven meetings. Due to the absence of any viable resolution plan and the company's continued losses, the CoC, with 100% voting share, resolved to liquidate the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the application for liquidation under section 33(1)(a) of the Insolvency and Bankruptcy …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC) mandates the Adjudicating

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**Reasoning:** The court reasoned that since no resolution plan was received within the CIRP period, and

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if no resolution plan is

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**Application:** In this case, the Corporate Debtor failed to attract a viable resolution plan

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Bihar State…
- **Advocates:** Shaunak…; Saurav…; +3 more

## Timeline

- **2019-10-16 — CIRP Init…**: Order passed for initiation of CIRP against Bihar State Construction Corporation Limited…
- **2019-10-18 — Public Annou…**: Public announcement in Form A published in 'Morning India' and 'Sanmarg' inviting claims…

## 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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