# In the matter of Dongah Geological Engineering India Private Limited

> NCLT judgment dated 2025-04-25. Citation: TCN-2025-NCLT-00177. The case pertains to a petition filed by Mr. Vikram Singh Rathore, the Liquidator of Dongah…

- **Court:** NCLT
- **Order date:** 25 Apr 2025
- **Citation:** TCN-2025-NCLT-00177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dongah-geological-engineering-india-private-limited-4a2887ba

## Summary

### Background

The case pertains to a petition filed by Mr. Vikram Singh Rathore, the Liquidator of Dongah Geological Engineering India Private Limited, under Section 59 of the Insolvency and Bankruptcy Code, 2016, seeking the suspension of the voluntary liquidation process. The corporate person, a subsidiary of Dongah Korea, initiated voluntary liquidation after facing business losses and being unable to secure new projects. The holding company waived off its loan to enable the corporate person to meet other liabilities. The voluntary liquidation was approved by the members in an extra-ordinary general meeting, and the liquidator initiated the process with public announcements. However, a dispute arose regarding a demand from Himachal Pradesh State Electricity Board (HPSEB) for

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## Facts

Dongah Geological Engineering India Private Limited, a subsidiary of Dongah Korea, initiated voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016. The company faced business losses after completing two projects in Jaipur and Rampur by 2014. The holding company waived off its loan to enable the corporate person to meet other liabilities. The voluntary liquidation was approved by the members in an extra-ordinary general meeting. A dispute arose with Himachal Pradesh State Electricity Board (HPSEB) regarding a demand for excess load usage, with an outstanding amount of Rs. 35,05,011/- after adjustments. The corporate person's funds were insufficient to meet this demand, leading the liquidator to seek suspension of the liquidation process. The

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## Issues and analysis

### Issue 1: Whether the liquidator is justified in seeking suspension of the voluntary liquidation process …

**Ratio:** Regulation 40(2) of the IBBI (Voluntary Liquidation Process) Regulations, 2017, states

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**Reasoning:** The court considered the liquidator's opinion that the corporate person would not be able

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**Interpretation:** Regulation 40(2) provides a mechanism for the liquidator to seek suspension of

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**Application:** In this case, the liquidator formed the opinion that the corporate person could

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## Parties

- **Judges:** Harnam Singh…; SHISHIR A…
- **Appellants:** VIKRAM SINGH…
- **Respondents:** DONGAH GEOLOGICAL…
- **Advocates:** Mr SS She…; Ms Paru She…

## Timeline

- **2016-01-01 — Enactment…**: Insolvency and…
- **2014-01-01 — End of Pr…**: Corporate person could not get any business after it finished Jaipur and Rampur projects…

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