# In the matter of EBC Bearings (India) Ltd.

> NCLT judgment dated 2023-09-25. Citation: TCN-2023-NCLT-01491. The Resolution Professional (RP) filed an application seeking initiation of liquidation…

- **Court:** NCLT
- **Order date:** 25 Sept 2023
- **Citation:** TCN-2023-NCLT-01491
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ebc-bearings-india-ltd-fb7b466c

## Summary

### Background

The Resolution Professional (RP) filed an application seeking initiation of liquidation proceedings against the Corporate Debtor (CD). This was due to the absence of any resolution plans despite the publication of Form-G. The Committee of Creditors (COC) voted with 100% in favor of liquidation during its meeting on September 8, 2023. The RP represented that the assets of the CD available for liquidation are valued at Rs. 20 Lakhs.

## Facts

The Resolution Professional (RP) filed an application seeking the initiation of liquidation proceedings against the Corporate Debtor (CD), EBC Bearings India Ltd. This action was prompted by the failure to receive any resolution plans despite the publication of Form-G, which is a public announcement inviting resolution plans. The Committee of Creditors (COC) convened a meeting on September 8, 2023, where they unanimously voted (100%) in favor of liquidating the Corporate Debtor. The RP informed the court that the assets of the Corporate Debtor available for liquidation are valued at Rs. 20 Lakhs. The court considered the IBBI circular IBBI/IPA-003/ICAI-N-00384/2021-2022/13926 when appointing the liquidator.

## Issues and analysis

### Issue 1: Whether the liquidation proceedings should be initiated against the Corporate Debtor, EBC Bearings …

**Ratio:** Liquidation proceedings can be initiated when no resolution plan is received, and the

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**Reasoning:** The court reasoned that since no resolution plans were received despite the publication

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**Interpretation:** This interprets the Insolvency and Bankruptcy Code (IBC) to mean that when

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**Application:** In this case, the absence of resolution plans and the COC's unanimous vote for

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Bhagyanagar…
- **Respondents:** EBC Bearings…

## Timeline

- **2023-09-08 — COC Meet…**: The Committee of Creditors (COC) voted with 100% voting for liquidation of the Corporate…
- **2023-09-25 — Order Da…**: The court allowed the petition for liquidation and appointed Mr. Gullapalli Kishore Babu…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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