# In the matter of Ecophos GNFC India Private Limited

> NCLT judgment dated 2024-08-09. Citation: TCN-2024-NCLT-00841. The case pertains to an application filed for the liquidation of the Corporate Debtor, Ecophos…

- **Court:** NCLT
- **Order date:** 9 Aug 2024
- **Citation:** TCN-2024-NCLT-00841
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ecophos-gnfc-india-private-limited-b834581b

## Summary

### Background

The case pertains to an application filed for the liquidation of the Corporate Debtor, Ecophos GNFC India Private Limited, under Sections 33 and 34 of the Insolvency & Bankruptcy Code, 2016. The Corporate Debtor was undergoing Corporate Insolvency Resolution Process (CIRP) since 06.07.2023, initiated by Simon India Limited. The Resolution Professional (RP) issued a public announcement and verified claims from creditors, forming a Committee of Creditors (CoC) with a single operational creditor. The Income Tax Office later filed a revised claim, leading to the reconstitution of the CoC. Three CoC meetings were held, during which it was discovered that the company had no major assets and its business was at a standstill. The CoC decided to liquidate the Corporate

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## Facts

Ecophos GNFC India Private Limited was undergoing CIRP since 06.07.2023, initiated by Simon India Limited. Manish Santosh Buchasia was the Resolution Professional (RP). A Committee of Creditors (CoC) was formed, initially with Simon India Limited as the sole operational creditor. The Income Tax Office later filed a revised claim and was admitted, leading to the reconstitution of the CoC. Three CoC meetings were held. The company had no major assets, and its business was at a standstill. The CoC decided to liquidate the Corporate Debtor with 100% voting. The valuation was not done due to the non-availability of financial statements and other required data. The estimated liquidation cost was Rs. 25 lakhs, while the estimated liquid assets available were Rs. 32 lakhs. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Ecophos GNFC India Private …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of

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**Reasoning:** The CoC, with 100% voting, resolved to liquidate the Corporate Debtor. The court

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**Interpretation:** Section 33(2) of the IBC grants significant weight to the commercial wisdom of

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**Application:** In this case, the CoC, with 100% voting, decided to liquidate the Corporate

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Manish Santosh…
- **Respondents:** Ecophos GNFC…; Simon India…

## Timeline

- **2023-07-06 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Ecophos GNFC India…
- **2023-12-07 — 3rd CoC M…**: 3rd Committee of Creditors (CoC) meeting held, where the voting share of Simon India…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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