# In the matter of NEC Electromech (India) Pvt. Ltd.

> NCLT judgment dated 2024-11-14. Citation: TCN-2024-NCLT-00224. The application was filed by Mr. Bijendra Kumar Jha, the Resolution Professional, under Section…

- **Court:** NCLT
- **Order date:** 14 Nov 2024
- **Citation:** TCN-2024-NCLT-00224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nec-electromech-india-pvt-ltd-ea62228c

## Summary

### Background

The application was filed by Mr. Bijendra Kumar Jha, the Resolution Professional, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, seeking the liquidation of the Corporate Debtor, NEC Electromech (India) Pvt. Ltd. The Financial Creditor, M/s. Vardhaman Cables & Conductors, had initially filed a Company Petition No. (IB)888/IBC/MB/2022 under Section 9 of the IBC to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The CIRP commenced on 02.03.2023, and Mr. Bijendra Kumar Jha was appointed as the Interim Resolution Professional (IRP).

## Facts

M/s. Vardhaman Cables & Conductors, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against NEC Electromech (India) Pvt. Ltd., the Corporate Debtor, by filing a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP commenced on 02.03.2023, and Mr. Bijendra Kumar Jha was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 11.03.2023, with a deadline of 23.03.2023 for claim submissions. The IRP received only one claim from the Operational Creditor, M/s. Vardhaman Cables & Conductors. The Committee of Creditors (CoC) comprised only the Operational Creditor, holding 100% voting rights. The CoC decided not to invite resolution plans by publishing Form G, as they did not

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can order the liquidation of the Corporate Debtor under Section …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, empowers the Adjudicating

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**Reasoning:** The court relied on the Sreedhar Tripathy Vs. Gujarat State Financial Corporation and

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**Interpretation:** Section 33(2) provides a mechanism for the CoC to decide on liquidation at any

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**Application:** In this case, the CoC, consisting of a sole Operational Creditor, decided not

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Bijendra Ku…
- **Respondents:** NEC Electromech…

## Timeline

- **2022-01-01 — Company Petiti…**: M/s. Vardhaman Cables & Conductors filed Company Petition No. (IB)888/IBC/MB/2022 under…
- **2023-03-02 — CIRP Commen…**: CIRP commenced, and Mr. Bijendra Kumar Jha was appointed as the Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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