# In the matter of Hindustan Controls & Equipment Private Limited

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00691. The case involves an application filed under section 33 and section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindustan-controls-equipment-private-limited-68db2165

## Summary

### Background

The case involves an application filed under section 33 and section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP) of Hindustan Controls and Equipment Private Limited, the Corporate Debtor, seeking initiation of liquidation process. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Mahavir Industrial Corporation, the Operational Creditor. The Committee of Creditors (CoC) was formed, and various meetings were held to explore resolution possibilities. However, the resolution plan submitted by a prospective resolution applicant (PRA) was rejected by the CoC.

## Facts

Mahavir Industrial Corporation, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Hindustan Controls and Equipment Private Limited (Corporate Debtor). Subodh Kumar Agrawal was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, primarily consisting of Punjab National Bank and later SIDBI. Several meetings were conducted to explore resolution possibilities, including inviting Expressions of Interest (EoI) from prospective resolution applicants (PRAs). One PRA, Ms. Vineeta Singhania, submitted a resolution plan, but it was ultimately rejected by the CoC with 100% voting share. The CIRP period was extended multiple times, but no

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed given the failure …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC) mandates that the

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**Reasoning:** The court reasoned that the CIRP period had expired without an approved resolution plan.

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**Interpretation:** Section 33 of the IBC is interpreted strictly to mean that if a resolution plan

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**Application:** The court applied the provisions of Section 33 to the facts of the case, noting

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Respondents:** Hindustan…

## Timeline

- **2022-07-05 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Hindustan Controls…
- **2022-07-07 — Public Annou…**: Public Announcements in Form A was published in “Financial Express” (English) and…

## Legal provisions

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

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