# In the matter of Southern Energy Investments Pvt.  Ltd. I.A No. 336 of 2022 in C.P. (IB) No.357-BB-2019

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04380. The Monitoring Committee of Southern Batteries Pvt Ltd filed an application (I.A No. 336 of…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/southern-energy-investments-pvt-ltd-ia-no-336-of-2022-in-cp-ib-no357-bb-2019-329f85d4

## Summary

### Background

The Monitoring Committee of Southern Batteries Pvt Ltd filed an application (I.A No. 336 of 2022) under Section 33(3) of the Insolvency and Bankruptcy Code, 2016, seeking an order of liquidation for the Corporate Debtor, Southern Batteries Pvt Ltd. The main petition, C.P. (IB) No.357/BB/2019, was initially filed by Allahabad Bank (now Indian Bank) under Section 7 of the I&B Code to initiate the Corporate Insolvency Resolution Process (CIRP) against Southern Batteries Pvt Ltd, which was admitted on 19.02.2020. A resolution plan submitted by Aharnisha Consultings Private Limited in consortium with the erstwhile promoters was approved by the Committee of Creditors (CoC) and subsequently approved by the Adjudicating Authority on 24.06.2022. However, the Resolution

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Southern Batteries Pvt Ltd based on an application filed by Allahabad Bank (now Indian Bank). A resolution plan submitted by Aharnisha Consultings Private Limited in consortium with the erstwhile promoters, operating under the Special Purpose Vehicle (SPV) Southern Energy Investments Pvt Ltd (SEIPL), was approved by the Committee of Creditors (CoC) and the Adjudicating Authority. The approved resolution plan required the Resolution Applicant to infuse INR 73 Crore within T+28 days of the effective date (22 July 2022). The Resolution Applicant failed to infuse the funds as per the agreed timeline and sought extensions. The Monitoring Committee, comprising representatives from Indian Bank, Union

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## Issues and analysis

### Issue 1: Whether the Resolution Applicant contravened the approved Resolution Plan by failing to infuse …

**Ratio:** Section 33(3) of the Insolvency and Bankruptcy Code, 2016, provides that where the

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**Reasoning:** The court observed that the Resolution Applicant was bound to infuse INR 73 Crores on or

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**Interpretation:** The interpretation of Section 33(3) is that any failure to adhere to the terms

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**Application:** In this case, the Resolution Applicant's failure to infuse the funds within the

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## Parties

- **Judges:** (Retd.) T.…; Manoj Kumar…
- **Appellants:** Monitoring…
- **Respondents:** Southern Batteries…; M/s.Southern…
- **Advocates:** Ms.Anupama…

## Timeline

- **2019-01-01 — Initiation…**: C.P. (IB) No.357/BB/2019 filed by Allahabad Bank (now Indian Bank) under Section 7 of the…
- **2020-02-19 — Admission o…**: Adjudicating Authority admitted the CIRP against M/s.Southern Batteries Pvt Ltd and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(3) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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