# In the matter of Venessa Metals & Alloys Private Limited IA-645-ND-2021 in Company Petition No. (IB)-2970(ND)2019

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00441. The case involves an application filed by the Resolution Professional (RP) of Venessa Metals…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00441
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/venessa-metals-alloys-private-limited-ia-645-nd-2021-in-company-petition-no-ib-2-3d15e0f5

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Venessa Metals and Alloys Private Limited under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by Neha Jain, an Operational Creditor, under Section 9 of the Code. The RP was appointed, and public announcements were made. The Committee of Creditors (CoC) was formed, and meetings were held to discuss the resolution process. Forensic audits were conducted, revealing undervalued and fraudulent transactions. Despite efforts to find a resolution plan, none were received, leading the CoC to resolve for liquidation.

## Facts

Neha Jain, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Venessa Metals and Alloys Private Limited ('Corporate Debtor') under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition on 2020-02-19. Ashish Singh was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite claims. Only one claim was received from Neha Jain. The Committee of Creditors (CoC) was constituted. Several CoC meetings were held to discuss the resolution process. The RP invited Expression of Interest (EOI) from prospective resolution applicants, but no EOI was received. A forensic audit revealed undervalued and

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## Issues and analysis

### Issue 1: Whether the application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the fact that the maximum period for the CIRP had

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**Interpretation:** Section 33(1) provides a mechanism for the liquidation of a corporate debtor

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**Application:** In this case, the maximum period for CIRP had expired, no resolution plan was

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** Neha…
- **Respondents:** Venessa Metals…; Shef…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2020-02-19 — CIRP Initiati…**: Adjudicating Authority ordered initiation of CIRP against Venessa Metals and Alloys…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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