# In the matter of Brinzk Powertech Private Limited

> NCLT judgment dated 2023-09-11. Citation: TCN-2023-NCLT-01726. The case pertains to an application filed by the Liquidator under Section 54 of the Insolvency…

- **Court:** NCLT
- **Order date:** 11 Sept 2023
- **Citation:** TCN-2023-NCLT-01726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/brinzk-powertech-private-limited-f38197d6

## Summary

### Background

The case pertains to an application filed by the Liquidator under Section 54 of the Insolvency and Bankruptcy Code, 2016 (IBC) for the dissolution of the Corporate Debtor, Brinzk Powertech Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by the Operational Creditor under Section 9 of the Code. Mr. V. Mahesh was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). A resolution plan submitted by the Promoter of the Corporate Debtor was rejected by the Committee of Creditors (CoC), which then recommended liquidation. The applicant then filed an application under Section 33 of IBC for liquidation, which was allowed on 15.07.2019.

## Facts

The Operational Creditor filed a petition under Section 9 of the IBC, leading to the initiation of CIRP against Brinzk Powertech Private Limited on 26.06.2018. Mr. V. Mahesh was appointed as IRP and later as RP. A resolution plan was submitted by the Promoter but was rejected by the CoC on 15.03.2019, leading to a recommendation for liquidation. An application under Section 33 of IBC for liquidation was allowed on 15.07.2019. The Liquidator made public announcements inviting claims, formed a Stakeholders Consultation Committee (SCC) on 07.11.2019, and opened a new bank account. E-auctions were conducted to sell the Corporate Debtor's assets, including land, building, plant, and machinery. The sale proceeds amounted to Rs. 7,77,00,000.00. The proceeds were distributed

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the Insolvency …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016 stipulates that where the assets

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**Reasoning:** The court observed that all assets of the Corporate Debtor had been liquidated, and the

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**Interpretation:** Section 54 provides a mechanism for formally dissolving a corporate entity once

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**Application:** Given that the assets of Brinzk Powertech Private Limited were completely

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** V. Ma…
- **Respondents:** Brinzk Powertech…; M/s. Valia…

## Timeline

- **2018-06-26 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **2019-03-15 — Rejection of Resolution…**: Committee of Creditors (CoC)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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