# In the matter of KUT Energy Private Limited

> NCLT judgment dated 2023-08-28. Citation: TCN-2023-NCLT-01884. The Resolution Professional of KUT Energy Private Limited filed an application under Section 33…

- **Court:** NCLT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLT-01884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kut-energy-private-limited-acb6f096

## Summary

### Background

The Resolution Professional of KUT Energy Private Limited filed an application under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of liquidation for the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was triggered by Punjab National Bank, a financial creditor, under Section 7 of the IBC. The application by the financial creditor was admitted by the NCLT on 07.10.2019. The Interim Resolution Professional (IRP) made a public announcement inviting claims. Several Committee of Creditors (CoC) meetings were held to explore resolution plans. Despite multiple attempts, no resolution plan was received. The CoC decided to consider liquidation of the Corporate Debtor.

## Facts

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against KUT Energy Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), which was admitted on 07.10.2019. Nipan Bansal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mahesh Bansal. Public announcements were made to invite claims from creditors. Several meetings of the Committee of Creditors (CoC) were held, but no resolution plan was received despite multiple attempts and extensions. The CoC then decided to pursue liquidation. The corporate debtor has minimal assets (Rs. 63,333/-). No claims were received from operational or financial creditors, except from Sentinel Consultants Private Limited, a related party. The IRP requested

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is empowered to pass a liquidation order under Section 33(1) of …

**Ratio:** Section 33(1) of the IBC empowers the Adjudicating Authority to pass a liquidation order

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**Reasoning:** The court reasoned that since no resolution plan was received and the CoC was not

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**Interpretation:** Section 33(1) of the IBC provides a clear framework for initiating liquidation

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**Application:** In this case, the court applied Section 33(1) of the IBC to the facts, noting

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Punjab National…
- **Respondents:** KUT Energy…

## Timeline

- **2019-10-07 — Admission of Ap…**: Application of the Financial Creditor…
- **2019-10-09 — Public Annou…**: IRP made the Public Announcement in Form A via Publication in the Economic Times…

## 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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