# In the matter of Costra Advertising India Private Limited IA No. 695-MB-IV-2021 in CP (IB) No.1887-MB-IV-2019

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04807. The case pertains to an application filed by the Resolution Professional, Mr. Hitesh Kothari,…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04807
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/costra-advertising-india-private-limited-ia-no-695-mb-iv-2021-in-cp-ib-no1887-mb-a3895b5f

## Summary

### Background

The case pertains to an application filed by the Resolution Professional, Mr. Hitesh Kothari, seeking liquidation of Costra Advertising India Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against Costra Advertising India Private Limited following the admission of a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Precision Cut Industries, the Financial Creditor. The IRP made public announcements as per Section 15 of the Code. The Committee of Creditors (CoC) was constituted, comprising Union Bank of India, Indusland Bank, and Siemens Financial Services Private Limited. The CoC resolved for the liquidation of the Corporate Debtor in its 6th meeting and authorized the Applicant to file the application for

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## Facts

Precision Cut Industries initiated Corporate Insolvency Resolution Process (CIRP) against Costra Advertising India Private Limited by filing a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2019-10-22. Following the initiation of CIRP, public announcements were made. A Committee of Creditors (CoC) was formed, consisting of Union Bank of India (84% voting share), Indusland Bank (12.19% voting share), and Siemens Financial Services Private Limited (3.81% voting share). In the 6th CoC meeting held on 2021-02-08, the CoC resolved to liquidate Costra Advertising India Private Limited and authorized the Resolution Professional to file an application for the same. The Resolution Professional, Mr. Hitesh Kothari, then filed

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## Issues and analysis

### Issue 1: Whether the application for liquidation of Costra Advertising India Private Limited, as resolved by …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The court considered the resolution passed by the CoC to liquidate the Corporate Debtor

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**Interpretation:** Section 33(1) provides the legal basis for initiating liquidation when the CoC

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**Application:** The CoC had resolved to liquidate Costra Advertising India Private Limited. The

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Hitesh Ko…
- **Respondents:** Costra Advertising…; Precision Cut…

## Timeline

- **2019-10-22 — Admission of…**: The Tribunal admitted the petition under Section 9 of the Code, initiating the Corporate…
- **2021-02-08 — CoC Meet…**: The 6th CoC meeting was held, wherein the CoC resolved for liquidation of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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