# In the matter of IBD Universal Pvt. Ltd.

> NCLT judgment dated 2024-05-22. Citation: TCN-2024-NCLT-01284. The case involves an application filed under Section 33(1)(b)(i) to (iii) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLT-01284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ibd-universal-pvt-ltd-c342e2a1

## Summary

### Background

The case involves an application filed under Section 33(1)(b)(i) to (iii) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor, IBD Universal Pvt Ltd Corporate Guarantor of M/s. NIIL Infrastructure Private Limited Principal Borrower. The Committee of Creditors (CoC) approved the liquidation with a 100% vote share. The Resolution Professional (RP) informed the tribunal that the CIRP timeline had expired, necessitating liquidation. The RP also drew attention to an interim order by the High Court of Karnataka regarding the RP's continuation as liquidator.

## Facts

The Corporate Debtor, IBD Universal Pvt Ltd Corporate Guarantor of M/s. NIIL Infrastructure Private Limited Principal Borrower, underwent a Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (CoC) approved a resolution for liquidation with a 100% vote share. The Resolution Professional (RP) informed the tribunal that the CIRP timeline had expired. Only one resolution plan was submitted by M/s Tanya Construction in consortium with M/s Rajendra Singh Kiledar Construction Pvt Ltd, but the CoC deemed the offered amount too low. The Corporate Debtor has multiple projects, including IBD Royale, IBD Hallmark Citii, IBD- Total Glory Citii, and IBD Kings Park, with varying statuses of construction and mortgage. The RP drew attention to an interim order

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## Issues and analysis

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

**Ratio:** Section 33(1) of the IBC states that where the Adjudicating Authority does not receive a

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**Reasoning:** The CoC approved the liquidation with a 100% voting share, indicating a lack of viable

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**Interpretation:** Section 33(1) mandates liquidation when resolution efforts fail, as evidenced

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**Application:** Since the CoC approved liquidation, and no resolution plan was accepted, the

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## Parties

- **Judges:** Sh. Ashok Kumar…; AVINASH K.…
- **Appellants:** Bank of B…
- **Respondents:** IBD Universal…; IBD Universal Pvt…

## Timeline

- **2024-02-08 — CoC Resol…**: The Committee of Creditors (CoC) passed a…
- **2024-01-04 — 9th COC M…**: The Financial Creditors noted the minutes of 9th COC Meeting held on 04.01.2024 later…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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