# In the matter of Harsh Speciality Coating Pvt. Ltd. I.A. 6262-2022 in Company Petition No. (IB) – 3105-(ND)-2019

> NCLT judgment dated 2023-04-26. Citation: TCN-2023-NCLT-03627. The application was filed by the liquidator under Regulation 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Apr 2023
- **Citation:** TCN-2023-NCLT-03627
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harsh-speciality-coating-pvt-ltd-ia-6262-2022-in-company-petition-no-ib-3105-nd-5caf5202

## Summary

### Background

The application was filed by the liquidator under Regulation 33(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking permission to sell the assets of the Corporate Debtor through private sale. The Corporate Insolvency Resolution Process (CIRP) of Harsh Speciality Coating Pvt. Ltd. was initiated on 2021-02-12. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor on 2021-10-19 and appointed Mrs. Reshma Mittal as the liquidator. The appointment was confirmed by the Tribunal on 2022-02-15. During liquidation, the liquidator found that the only remaining assets were expired old stock of chemicals, paints, water-based coating, polish, toners, and old furniture. The liquidator attempted to sell the goods

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Harsh Speciality Coating Pvt. Ltd. was initiated by the Tribunal on 2021-02-12. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor on 2021-10-19 and appointed Mrs. Reshma Mittal as the liquidator. The Tribunal confirmed the appointment on 2022-02-15. The liquidator discovered that the Corporate Debtor's remaining assets consisted of expired old stock, including chemicals, paints, water-based coating, polish, toners, and old furniture. The liquidator attempted to sell these goods through e-auctions, publishing notices on 2022-06-20 in Financial Express and Jansatta newspapers. However, the e-auctions were unsuccessful, with only one bidder participating in the first auction, who did not turn

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## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to sell the assets of the Corporate Debtor through …

**Ratio:** Regulation 33 of the IBBI (Liquidation Process) Regulations, 2016, requires the

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**Reasoning:** The court reasoned that despite several e-auctions, the Liquidator could not succeed in

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**Interpretation:** The interpretation of Regulation 33 emphasizes the need for the liquidator to

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**Application:** Given the unsuccessful e-auction attempts and the nature of the assets (expired

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## Parties

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

## Timeline

- **2021-02-12 — Initiation…**: The Corporate Insolvency Resolution Process (CIRP) of Harsh Speciality Coating Pvt. Ltd.…
- **2021-10-19 — CoC Decision to…**: The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor and appoint…

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