# In the matter of Capital Electronics and Appliances Limited

> NCLT judgment dated 2024-04-09. Citation: TCN-2024-NCLT-01770. The case involves an application under Section 33 read with Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Apr 2024
- **Citation:** TCN-2024-NCLT-01770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/capital-electronics-and-appliances-limited-005962ea

## Summary

### Background

The case involves an application under Section 33 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) of Capital Electronics and Appliances Limited. The CIRP was initiated based on an application under Section 9 of the IBC. The applicant was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Several events occurred during the CIRP, including the constitution and reconstitution of the Committee of Creditors (CoC), invitation for expression of interest from prospective resolution applicants, withdrawal of claims by financial creditors, and the inability to approve a resolution plan. The CIRP period expired, and the CoC members

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## Facts

ISERVE SOLUTIONS & SERVICES PRIVATE LIMITED initiated CIRP against Capital Electronics and Appliances Limited. The application was admitted on January 16, 2023, and an Interim Resolution Professional (IRP) was appointed. Public announcements were made to invite claims from creditors. A Committee of Creditors (CoC) was formed, and the IRP was confirmed as the Resolution Professional (RP). Bajaj Finance Limited, holding a significant voting share (90.91%), withdrew its claim, leading to the CoC's non-participation in meetings. The 180-day CIRP period expired on July 14, 2023, without a resolution plan. Capfloat Financial Services Private Limited also withdrew its claim. The CoC was reconstituted with operational creditors. The RP issued a Request for Resolution Plan

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Capital Electronics and Appliances Limited, should be liquidated due …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC) mandates the Adjudicating

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**Reasoning:** The Adjudicating Authority observed that the CIRP period had expired, and no resolution

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that liquidation is the default

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**Application:** In this case, the CIRP period expired on September 27, 2023, after considering

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Capital Electronic…
- **Advocates:** Tanvi Luha…

## Timeline

- **2020-01-01 — Filing of App…**: C.P. (IB)/724(KB)2020 was filed to initiate CIRP against Capital Electronics and…
- **2023-01-16 — Admission of Ap…**: The application was admitted by the Tribunal, and the applicant was appointed as Interim…

## 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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