# In the matter of Hindusthan Small Tools Private Limited IA(IBC)-688(KB)2022 in CP(IB)-1074(KB)2019

> NCLT judgment dated 2022-12-19. Citation: TCN-2022-NCLT-00108. The case involves an application filed by the Resolution Professional (RP) of Hindusthan Small…

- **Court:** NCLT
- **Order date:** 19 Dec 2022
- **Citation:** TCN-2022-NCLT-00108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindusthan-small-tools-private-limited-iaibc-688kb2022-in-cpib-1074kb2019-6ee34fed

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Hindusthan Small Tools Private Limited, the Corporate Debtor, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 14/01/2022. A Committee of Creditors (CoC) was constituted, comprising ICICI Bank Limited. The RP published a public announcement inviting claims from creditors. Three prospective resolution applicants (PRAs) expressed interest, but only one submitted a resolution plan. The CoC found the revised resolution plan unsatisfactory, leading to a decision to liquidate the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Hindusthan Small Tools Private Limited on 14/01/2022. Kuldeep Verma was appointed as the Interim Resolution Professional (IRP) and later continued as the Resolution Professional (RP). ICICI Bank Limited was the primary financial creditor and constituted the Committee of Creditors (CoC). A public announcement was made to invite claims from creditors. Three prospective resolution applicants (PRAs) expressed interest, but only M/s. Prime Capital Market Limited submitted a resolution plan. The CoC found the initial bid of Rs. 1.75 Crore too low and invited a revision. M/s. Prime Capital Market Limited submitted a revised plan for Rs. 3.01 Crore. The CoC deemed the revised plan unsatisfactory, as it

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Hindusthan Small Tools Private …

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

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

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**Interpretation:** Section 33 of the IBC provides a clear framework for liquidation when a

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**Application:** In this case, the CoC's decision to liquidate, coupled with the absence of a

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** ICICI Bank…
- **Respondents:** HINDUSTHAN SMALL…

## Timeline

- **2022-01-14 — Initiation…**: The Adjudicating authority ordered…
- **2022-01-16 — Public Annou…**: A Public Announcement in Form A was published in “Financial Express” (English) and…

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