# In the matter of Bony Paul Systems Pvt. Ltd. IA No. 902-2020 in CP (IB) No. 359-Chd-Hry-2018

> NCLT judgment dated 2022-07-13. Citation: TCN-2022-NCLT-01741. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Bony…

- **Court:** NCLT
- **Order date:** 13 Jul 2022
- **Citation:** TCN-2022-NCLT-01741
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bony-paul-systems-pvt-ltd-ia-no-902-2020-in-cp-ib-no-359-chd-hry-2018-029c7e10

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Bony Paul Systems Private Limited. The CIRP was initiated following an application under Section 33 of the Insolvency and Bankruptcy Code, 2016 (IBC). The applicant, Mr. Anil Arora, served as the Resolution Professional (RP). The CIRP commenced on 2019-10-23. Public announcements were made to invite claims from creditors. A Committee of Creditors (CoC) was constituted on 2019-11-17, comprising 18 operational creditors. An application for extension of the CIRP period and exclusion of the lockdown period was filed. Despite efforts to invite resolution plans, only one Expression of Interest (EOI) was received, but no resolution plan materialized. Consequently, the CoC resolved to

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Bony Paul Systems Private Limited on 2019-10-23. Mr. Anil Arora was appointed as the Interim Resolution Professional (IRP) and later continued as the Resolution Professional (RP). A Committee of Creditors (CoC) was formed on 2019-11-17, consisting of 18 operational creditors. The RP published invitations for Expression of Interest (EOI) for submission of a resolution plan. Only one EOI was received, but no resolution plan was submitted. An application was filed to extend the CIRP period and exclude the lockdown period. The CoC resolved to liquidate the Corporate Debtor on 2020-11-25, as no resolution plan was received. A claim petition by the Corporate Debtor against Larsen and Turbo Limited for

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for the liquidation of the Corporate Debtor …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The CoC, in its 7th meeting held on 2020-11-25, decided to liquidate the Corporate Debtor

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**Interpretation:** Section 33(2) provides a clear mechanism for liquidation when the CIRP fails to

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was based on

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Gujarat Poly…
- **Respondents:** Bony Paul Systems…
- **Advocates:** Mr Nahush…

## Timeline

- **2019-10-23 — CIRP Init…**: Corporate Insolvency Resolution Process was…
- **2019-10-23 — Appointment…**: The applicant was appointed as an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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