# In the matter of Bil Energy Systems Limited

> NCLT judgment dated 2023-12-04. Citation: TCN-2023-NCLT-00474. The case involves two Interlocutory Applications (IAs), IA No. 2825 of 2023 and IA No. 2947 of…

- **Court:** NCLT
- **Order date:** 4 Dec 2023
- **Citation:** TCN-2023-NCLT-00474
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bil-energy-systems-limited-a6e427e6

## Summary

### Background

The case involves two Interlocutory Applications (IAs), IA No. 2825 of 2023 and IA No. 2947 of 2023, filed in connection with CP(IB) 4058 (MB)2019. IA No. 2825 challenges the resolution passed by the Committee of Creditors (CoC) of Bil Energy Systems Limited ('the Corporate Debtor') to initiate a liquidation process. The applicant, Mayank Goyal, a prospective resolution applicant (PRA), sought access to the Request For Resolution Plan (RFRP) and Information Memorandum (IM) to submit a resolution plan. IA No. 2947 was filed by the Resolution Professional (RP) seeking an order under Section 33 of the Insolvency and Bankruptcy Code, 2016 for the commencement of the liquidation process and appointment of the RP as liquidator.

## Facts

State Bank of India (SBI), a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), leading to the admission of Bil Energy Systems Limited ('the Corporate Debtor') into Corporate Insolvency Resolution Process (CIRP) on 2022-12-09. Mr. Anuj Bajpai was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement on 2022-12-13, inviting claims from creditors with a deadline of 2022-12-24. The CoC was constituted with SBI as the sole member. Form G was published on 2023-03-23, setting the last date for receipt of Expression of Interest (EoI) as 2023-04-10 and the date for issuing the provisional list of Prospective Resolution Applicants (PRAs) as 2023-04-12. The Form G clarified that the Corporate

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## Issues and analysis

### Issue 1: Whether the decision of the Committee of Creditors (CoC) to initiate liquidation of the Corporate …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) empowers the CoC to decide on

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**Reasoning:** The court reasoned that Section 33(2) explicitly grants the CoC the power to decide on

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**Interpretation:** Section 33(2) provides a clear legal basis for the CoC's decision-making power

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**Application:** In this case, the CoC, with SBI as the sole member, decided to liquidate the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Mayank…
- **Respondents:** Bil Energy…; G. Madusudh…

## Timeline

- **2019-01-01 — CP(IB) F…**: CP(IB) 4058 (MB)2019…
- **2022-12-09 — CIRP Commen…**: Corporate Debtor admitted into Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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