# In the matter of Digicontrols Nortern Private Limited IA No. 53-JPR-2021 in CP No. (IB)-164-9-JPR-2019

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03790. The case involves an application (IA No. 53/JPR/2021) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03790
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/digicontrols-nortern-private-limited-ia-no-53-jpr-2021-in-cp-no-ib-164-9-jpr-201-1a3f6c72

## Summary

### Background

The case involves an application (IA No. 53/JPR/2021) filed by the Resolution Professional (RP) of Digicontrols Northern Private Ltd under Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016, seeking a liquidation order against the Corporate Debtor, Digicontrols Northern Private Ltd. The Adjudicating Authority had previously admitted an application filed by Eltech Electro-Controls Private Limited under Section 9 of the Code for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and appointed Mr. Ranjeet Kumar Verma as Interim Resolution Professional (IRP).

## Facts

M/s. Eltech Electro-Controls Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Digicontrols Northern Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 11.10.2019. Mr. Ranjeet Kumar Verma was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), which unanimously appointed the IRP as the Resolution Professional (RP). The RP invited Expression of Interest (EOI) for submitting a resolution plan, but no EOIs or resolution plans were received. In the 4th CoC meeting held on 06.03.2020, the RP proposed the liquidation of the Corporate Debtor, which was approved by a majority vote of not less than 66%. The RP then filed an

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## Issues and analysis

### Issue 1: Whether the application for liquidation filed by the Resolution Professional is maintainable under …

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

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**Reasoning:** The Adjudicating Authority considered the fact that no resolution plan was received

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**Interpretation:** Section 33 provides a clear pathway for liquidation when CIRP fails to produce

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**Application:** The RP's application was deemed maintainable because the conditions under

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## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Respondents:** Digicontrols…; M/s. Digicontrols…

## Timeline

- **2019-10-11 — Application A…**: Application under Section 9…
- **2019-11-25 — First CoC M…**: The 1st meeting of CoC…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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