# In the matter of Harsh Speciality Coating Pvt. Ltd.

> NCLT judgment dated 2023-11-07. Citation: TCN-2023-NCLT-00841. The case involves an application for the dissolution of Harsh Speciality Coating Pvt Ltd, the…

- **Court:** NCLT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLT-00841
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harsh-speciality-coating-pvt-ltd-0d6953c5

## Summary

### Background

The case involves an application for the dissolution of Harsh Speciality Coating Pvt Ltd, the Corporate Debtor, filed by the Liquidator under Section 54 of the Insolvency & Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by PPG Asian Paints Pvt. Ltd, an Operational Creditor, under Section 9 of the Code. The Tribunal admitted the petition on 12.02.2021 and appointed Mr. Romesh Chander Sawhney as the Interim Resolution Professional (IRP). The IRP issued a public announcement and invited claims from creditors, subsequently constituting a Committee of Creditors (CoC).

## Facts

PPG Asian Paints Pvt. Ltd, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Harsh Speciality Coating Pvt Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Tribunal admitted the petition on 12.02.2021 and appointed Mr. Romesh Chander Sawhney as the Interim Resolution Professional (IRP). The IRP was later replaced by Ms. Reshma Mittal. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor. A liquidation order was passed on 15.02.2022. The Liquidator prepared a list of stakeholders, including Financial Creditors (Bank of Baroda), Government Dues, and Other than Workmen/Employees/Government Dues. The Liquidator attempted to sell the Corporate Debtor's stock but found it

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## Issues and analysis

### Issue 1: Whether the assets of the Corporate Debtor have been completely liquidated as required under …

**Ratio:** Section 54 of the IBC, 2016 and Regulation 45 of IBBI (Liquidation Process) Regulations,

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**Reasoning:** The Adjudicating Authority relied on the Liquidator's statement that the assets of the

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**Interpretation:** The legal issue revolves around the interpretation of 'completely liquidated'

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**Application:** In this case, the Liquidator had taken steps to liquidate the assets of the

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## Parties

- **Judges:** RAHUL BHA…; BACHU VENKAT…
- **Respondents:** M/S HARSH…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition no. (IB)-3105/(ND)/2019…
- **2021-02-12 — Admission…**: Tribunal admitted the petition and appointed Mr. Romesh Chander Sawhney as the Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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