# In the matter of Brahmaputra Rolling Mills Pvt. Ltd.

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01206. The case involves an application under Section 33(2) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/brahmaputra-rolling-mills-pvt-ltd-a8d38776

## Summary

### Background

The case involves an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, for the liquidation of Brahmaputra Rolling Mills Pvt. Ltd. The Corporate Debtor (Brahmaputra Rolling Mills Pvt. Ltd.) was admitted into the Corporate Insolvency Resolution Process (CIRP) on 18th November 2022, following an application under Section 10 of the IBC. Mr. Purshotam Gaggar was initially appointed as the Interim Resolution Professional (IRP) but was later replaced by Ms. Meena Sureka based on a decision by the Committee of Creditors (CoC). The CoC, noting that the tangible assets of the Corporate Debtor had already been sold under the SARFAESI Act, decided to initiate liquidation instead of pursuing a resolution plan. The Adjudicating Authority appointed Ms.

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## Facts

The Corporate Debtor, Brahmaputra Rolling Mills Pvt. Ltd., faced insolvency proceedings initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on November 18, 2022. Initially, Mr. Purshotam Gaggar was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed and, in its first meeting on December 21, 2022, decided to replace Mr. Gaggar with Ms. Meena Sureka as the Resolution Professional (RP). The tangible assets of the Corporate Debtor had already been sold under the SARFAESI Act. The CoC decided to initiate liquidation under Section 33(2) of the IBC, rather than pursue a resolution plan. The Adjudicating Authority appointed Ms. Meena Sureka as the RP on February 10, 2023. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Brahmaputra Rolling Mills Pvt. Ltd., should be liquidated under …

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

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**Reasoning:** The CoC, with 100% voting rights, approved the resolution for liquidation of the

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**Interpretation:** Section 33(2) provides a mechanism for the CoC to decide on liquidation before

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**Application:** The CoC's decision, coupled with the prior sale of assets, justified the

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## Parties

- **Judges:** H.V. Subb…; Satya Ranjan…
- **Respondents:** Brahmaputra…; State Bank of…

## Timeline

- **2022-11-18 — Admission in…**: Application under Section 10 of the IBC admitted, initiating CIRP for Brahmaputra Rolling…
- **2022-12-21 — Replacement…**: Committee of Creditors (CoC) decides to replace Interim Resolution Professional (IRP) Mr.…

## 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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