# In the matter of Icoat Projects Private Limited

> NCLT judgment dated 2024-06-14. Citation: TCN-2024-NCLT-01157. The case pertains to an application filed under Section 35(1)(N) and Section 60(5)(C) of the…

- **Court:** NCLT
- **Order date:** 14 Jun 2024
- **Citation:** TCN-2024-NCLT-01157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/icoat-projects-private-limited-66eec357

## Summary

### Background

The case pertains to an application filed under Section 35(1)(N) and Section 60(5)(C) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 45(3)(A) of the IBBI (Liquidation Process) Regulations, 2016, seeking the closure of the liquidation process for ICOAT Projects Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on 23.03.2022, but it was unsuccessful. The Committee of Creditors (COC) decided on 10.04.2023 to liquidate the Corporate Debtor. Liquidation proceedings were ordered on 26.05.2023.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against ICOAT Projects Private Limited on 23.03.2022. The CIRP was unsuccessful, leading to a decision by the Committee of Creditors (COC) on 10.04.2023 to liquidate the company. Liquidation proceedings were ordered on 26.05.2023. The liquidator issued a public announcement and constituted a Stakeholders' Consultation Committee (SCC). A sale notice was issued on 04.08.2023, and an e-auction was conducted on 27.08.2023, where Shri Ballari Srinivas Rao emerged as the successful bidder with a bid of Rs 40,00,000. The liquidator issued a Letter of Intent on 29.08.2023, and the bidder remitted Rs 36.00 lakhs on 26.09.2023. A sale certificate was issued on 03.10.2023. The liquidator also recovered Rs 10,00,000

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor, ICOAT Projects Private Limited, should be …

**Ratio:** Regulation 45(3) of the Insolvency & Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The court observed that the Corporate Debtor was sold as a going concern, and the

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**Interpretation:** Regulation 45(3) allows for the closure of liquidation proceedings when the

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**Application:** Since ICOAT Projects Private Limited was sold as a going concern, the court

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## Parties

- **Judges:** N. Venkata…; SH. CHARAN…
- **Appellants:** Aeruva Naga…
- **Respondents:** ICOAT Projects…

## Timeline

- **2022-03-23 — Initiation…**: Corporate Insolvency Resolution Process (CIRP)…
- **2023-04-10 — Decision to L…**: Committee of Creditors (COC) decided…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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