# In the matter of Butta Infrastructure Private Limited IA No. 112 of 2022 in CP(IB) No. 325-7-HDB-2020

> NCLT judgment dated 2022-02-24. Citation: TCN-2022-NCLT-03978. The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against Butta…

- **Court:** NCLT
- **Order date:** 24 Feb 2022
- **Citation:** TCN-2022-NCLT-03978
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/butta-infrastructure-private-limited-ia-no-112-of-2022-in-cpib-no-325-7-hdb-2020-2aa7dac3

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against Butta Infrastructure Private Limited. The Resolution Professional (RP) was appointed following a Tribunal order dated 2021-03-01. The RP filed an application under Section 33(1)(a) of the Insolvency & Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. The company petition filed by the Corporate Person under Section 7 of IBC, 2016, was admitted by the Adjudicating Authority on 2021-03-01, initiating CIRP. The applicant was appointed as Interim Resolution Professional (IRP) and continued as Resolution Professional. An extension of the CIRP term was granted, but two resolution plans were rejected by the Committee of Creditors (CoC).

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Butta Infrastructure Private Limited following an order by the Tribunal on 2021-03-01. The Resolution Professional (RP) appointed by the Tribunal filed an application under Section 33(1)(a) of the Insolvency & Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. The company petition filed by the Corporate Person under Section 7 of IBC, 2016, was admitted by the Adjudicating Authority on 2021-03-01, initiating CIRP. The applicant was appointed as Interim Resolution Professional (IRP) and continued as Resolution Professional. The first extension of the term of CIRP by 90 days beyond 180 days was granted on 2021-10-22, apart from exclusion of 45 days covid lockdown period. Two

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Butta Infrastructure Private Limited, should be put under …

**Ratio:** The primary object of IBC is resolution, and liquidation is the last resort. However,

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**Reasoning:** The Tribunal reasoned that the efforts to resolve the Corporate Debtor's insolvency had

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**Interpretation:** The interpretation is that when resolution efforts fail and timelines are not

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** LIC Housing…
- **Respondents:** Butta Infrastructu…; M/s. Butta…

## Timeline

- **2021-03-01 — Tribunal…**: Tribunal order directing initiation of Corporate Insolvency Resolution Process (CIRP)…
- **2021-03-01 — Admission of Company…**: The Company Petition filed by the Corporate Person under Section 7 of IBC, 2016, was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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