# In the matter of Smartron India Private Limited

> NCLT judgment dated 2024-11-12. Citation: TCN-2024-NCLT-00268. The case pertains to an application filed by the Resolution Professional of Smartron India…

- **Court:** NCLT
- **Order date:** 12 Nov 2024
- **Citation:** TCN-2024-NCLT-00268
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/smartron-india-private-limited-09400d8c

## Summary

### Background

The case pertains to an application filed by the Resolution Professional of Smartron India Private Limited under Section 33(2) & 54(1) read with Section 60(5) of the IBC, 2016, and Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016, seeking the dissolution of the Corporate Debtor without undergoing the liquidation process. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a Section 9 petition filed by ZTE Corporation, China. The Committee of Creditors (CoC) proposed direct dissolution, deeming resolution/revival infeasible due to the Corporate Debtor's condition and the opinion that liquidation would incur additional expenditure and be futile.

## Facts

ZTE Corporation, China, initiated the Corporate Insolvency Resolution Process (CIRP) against Smartron India Private Limited by filing a Section 9 petition, which was admitted on 2024-01-10. Raghu Babu Gunturu was appointed as the Resolution Professional. A public announcement was made on 2024-01-17, inviting claims from creditors. The Committee of Creditors (CoC) was constituted, with ZTE Corporation holding 99.74% of the voting share. The CoC, in its 4th meeting, proposed direct dissolution of Smartron India Private Limited, considering resolution/revival infeasible and liquidation futile. The Resolution Professional then filed an application for direct dissolution under Section 33(2) & 54(1) of the IBC, 2016, arguing that the Corporate Debtor had no assets and no

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor can be dissolved …

**Ratio:** Section 54 of the IBC, 2016, and Regulation 45 of the IBBI (Liquidation Process)

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**Reasoning:** The court reasoned that since there were no assets for realization and the CoC had

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**Interpretation:** The court interpreted Section 54 and Regulation 45 flexibly, recognizing that

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**Application:** The court applied this interpretation to the specific facts, noting the absence

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## Parties

- **Judges:** N. Venkata…; SH. CHARAN…
- **Appellants:** Raghu Babu…
- **Respondents:** Smartron India…; Registrar of…

## Timeline

- **2024-01-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated following the admission of a…
- **2024-01-17 — Public Annou…**: Public announcement made,…

## 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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