# In the matter of Capital Electronics and Appliances Limited

> NCLT judgment dated 2024-04-09. Citation: TCN-2024-NCLT-01777. 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-01777
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/capital-electronics-and-appliances-limited-079b8a53

## 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 filed under Section 9 of the IBC. 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. The Committee of Creditors (CoC) was formed, and meetings were held. However, due to various issues, including the withdrawal of claims by major financial creditors like Bajaj Finance Limited and Capfloat Financial Services Private Limited, the CoC's functioning was hampered, and no resolution

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## Facts

ISERVE SOLUTIONS & SERVICES PRIVATE LIMITED initiated CIRP against CAPITAL ELECTRONICS AND APPLIANCES LIMITED under Section 9 of IBC, which was admitted on January 16, 2023, and Mr. Rasik Singhania was appointed as the Interim Resolution Professional (IRP). Public announcements were made on January 18, 2023, inviting claims from creditors. The Committee of Creditors (CoC) was formed, and its first meeting was held on February 14, 2023, where the IRP was confirmed as the Resolution Professional. Subsequently, Bajaj Finance Limited and Capfloat Financial Services Private Limited submitted claims, leading to the reconstitution of the CoC. Bajaj Finance Limited, holding 90.91% voting share, later sought to withdraw its claim, which was allowed by the Tribunal on

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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 mandates that where the Adjudicating

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**Reasoning:** The Tribunal noted that the CIRP period had expired, and no resolution plan was received

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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 had expired, and no resolution plan was received.

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## Parties

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

## Timeline

- **2020-01-01 — Filing of Application…**: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was filed to…
- **2023-01-16 — Admission of Application…**: The application was admitted by the Tribunal, and Mr. Rasik Singhania was appointed as…

## Legal provisions

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

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