# In the matter of Smartron India Private Limited

> NCLT judgment dated 2024-11-05. Citation: TCN-2024-NCLT-00307. The case involves an application for the dissolution of Smartron India Private Limited under…

- **Court:** NCLT
- **Order date:** 5 Nov 2024
- **Citation:** TCN-2024-NCLT-00307
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/smartron-india-private-limited-228ba7b1

## Summary

### Background

The case involves an application for the dissolution of Smartron India Private Limited under Section 33(2) and 54(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Section 60(5) of the IBC and Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Smartron India Private Limited following the admission of a Section 9 petition filed by ZTE Corporation, China. The Committee of Creditors (CoC) proposed direct dissolution of the Corporate Debtor, as resolution/revival was not feasible. The Resolution Professional (RP) filed the application for dissolution without liquidation, citing no assets to realize and the futility of incurring

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## Facts

ZTE Corporation, China, initiated Corporate Insolvency Resolution Process (CIRP) against Smartron India Private Limited by filing a Section 9 petition, which was admitted by the NCLT. Raghu Babu Gunturu was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) determined that the revival of Smartron India Private Limited was not feasible due to its financial condition. The CoC proposed direct dissolution of the company to avoid incurring additional liquidation expenses. The RP filed an application for dissolution under Section 33(2) and 54(1) of the IBC, stating that the company had no assets to realize. The total claims admitted were INR 10,42,13,498, with ZTE Corporation holding 99.74% of the voting share. The RP certified that there were 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 Tribunal reasoned that since the Corporate Debtor had no assets and the CoC had

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**Interpretation:** The Tribunal interpreted Section 54 of the IBC and Regulation 45 of the IBBI

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**Application:** The Tribunal applied the ratio to the facts of the case, noting that the

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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 upon admission of Section 9…
- **2024-01-17 — Public Annou…**: Public announcement made in Financial Express and Mana Telangana inviting claims from…

## 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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