# In the matter of Trend Electronics Limited I.A.-2104 & 2858-2021 In CP(IB)-559-(MB)-2018

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04650. The case involves two Interlocutory Applications (IAs) filed in the matter of the Corporate…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04650
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/trend-electronics-limited-ia-2104-2858-2021-in-cpib-559-mb-2018-472a5aca

## Summary

### Background

The case involves two Interlocutory Applications (IAs) filed in the matter of the Corporate Insolvency Resolution Process (CIRP) of Trend Electronics Limited. IA/2104/2021 was filed by the Resolution Professional (RP), Divyesh Desai, seeking initiation of the liquidation process. IA/2858/2021 was filed by Venugopal Dhoot, the ex-promoter, seeking withdrawal of the CIRP based on a restructuring proposal. The CIRP was initiated on 25.09.2018. The Committee of Creditors (CoC) approved the liquidation of the Corporate Debtor as a going concern. The ex-promoter's restructuring proposal was rejected by the CoC.

## Facts

The CIRP of Trend Electronics Limited was initiated on 25.09.2018. Dushyant Dave was initially appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Subsequently, Divyesh Desai was appointed as the IRP. The CoC approved the liquidation of the Corporate Debtor as a going concern with 100% majority. Venugopal Dhoot, the ex-promoter, submitted a restructuring proposal under Section 12A of the IBC, offering to repay Rs. 400-3000 Crores to financial creditors depending on the use of the 'Videocon' and 'Kelvinator' brands. The CoC rejected this proposal. The RP argued that the restructuring proposal was a consolidated one for 15 Videocon Group companies and not specific to Trend Electronics Limited. The CoC unanimously voted

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP filed by the ex-promoter is maintainable under …

**Ratio:** Section 12A of the IBC and Regulation 30A of the Insolvency and Bankruptcy Board of India

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**Reasoning:** The Tribunal observed that the application for withdrawal was filed directly by the

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**Interpretation:** Section 12A is interpreted to mean that the application for withdrawal must be

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**Application:** Since the ex-promoter filed the application directly, it was deemed not

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Respondents:** Trend Electronics…; Divyesh…

## Timeline

- **2018-09-25 — CIRP Init…**: CIRP initiated against the…
- **2021-07-19 — 30th CoC M…**: 30th CoC meeti…

## 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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