# In the matter of Herodex Power Systems PrivateLimited

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04645. The application I.A. No. 1894/2020 was filed by the Resolution Professional, Mr. Prakash Nath…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04645
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/herodex-power-systems-privatelimited-16432686

## Summary

### Background

The application I.A. No. 1894/2020 was filed by the Resolution Professional, Mr. Prakash Nath Mishra, seeking liquidation of Herodex Power Systems Private Ltd. The Committee of Creditors (CoC), consisting of Canara Bank as the sole financial creditor, resolved to liquidate the Corporate Debtor. The Corporate Debtor was ordered into CIRP on 09.09.2019. Public announcement of CIRP was made on 03.10.2019. The last date for filing claims by creditors was 15.10.2019. The IRP, Mr. Hajari Lal Saini, continued as deemed RP. An invitation for Expression of Interest (EOI) was published on 01.01.2020. The last date for submission of EOI was 17.01.2020, and EOIs were received from four prospective resolution applicants. On 19.02.2020, Mr. Hajari Lal Saini was replaced by Mr.

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## Facts

The Resolution Professional, Mr. Prakash Nath Mishra, filed an application seeking the liquidation of Herodex Power Systems Private Ltd. The Committee of Creditors (CoC), consisting solely of Canara Bank, resolved to liquidate the Corporate Debtor. The Corporate Debtor was admitted into CIRP on 09.09.2019. A public announcement of the CIRP was made on 03.10.2019, with 15.10.2019 being the last date for creditors to file claims. Mr. Hajari Lal Saini initially served as the Interim Resolution Professional (IRP) and later as the Resolution Professional. An invitation for Expression of Interest (EOI) was published on 01.01.2020, and four prospective resolution applicants submitted EOIs. On 19.02.2020, Mr. Prakash Nath Mishra replaced Mr. Hajari Lal Saini as the Resolution

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Herodex Power Systems Private …

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

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**Reasoning:** The CoC unanimously decided to liquidate the Corporate Debtor due to the absence of any

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when the

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**Application:** In this case, the CoC, consisting of Canara Bank, unanimously decided to

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## Parties

- **Judges:** H.V. Subb…; Prabhat…
- **Appellants:** Prakash Nath…
- **Respondents:** Herodex Power…

## Timeline

- **2019-09-09 — CIRP Ord…**: Corporate Debtor was…
- **2019-10-03 — Public Announcement of…**: Public announcement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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