Eshakti.com Private Limited

This is an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 seeking reliefs as follows:

It is stated that the Corporate Debtor had filed an application under Section 10 of Insolvency and Bankruptcy Code, 2016 (hereinafter, IBC, 2016) seeking initiation of CIRP. The application was allowed vide order of this Tribunal dated 09.12.2024 in CP(IB)/177(CHE)/2024 and Mr. Ebenezar Inbaraj was appointed as the Interim Resolution Professional (IRP).

It is stated that the IRP issued Public Announcement in Form-A on 12.12.2024 inviting the claims against the Corporate Debtor, in English daily, Business Standard' and Tamil daily 'Hindu Tamil' as per Section 15 of IBC, 2016 read with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016 (hereinafter, CIRP Regulations). The last date for submission of claims was 26.12.2024.

It is stated that the IRP received and collated the claims and constituted the CoC comprising of Paragon Partners LLP, M/s Instant Autogas Equipment and MITCON Credential Trusteeship Services Limited (Karnation Fund-I).

It is stated that in the 1^st CoC meeting held on 07.01.2025, the CoC unanimously resolved to replace the IRP and appoint the Applicant herein as the Resolution Professional. Thereafter, this Tribunal vide order dated 17.02.2025 in in IA (IBC) 195/2025 appointed Ms. Renuka Rangaswamy as the Resolution Professional (RP).

It is stated that on verification of books, the Applicant re-classified Paragon Partners LLP as a related party of the Corporate Debtor. Accordingly, CoC was re-constituted comprising M/ s. Instant Autogas Equipment and MITCO Credential Trusteeship Services Limited (Karnation Fund-I). The Report Certifying the reconstituted Committee of Creditors was filed before this Tribunal and the same was taken on record vide order dated 16.04.2025 in IA No. 568 of 2025. The details of the re-constituted CoC is extracted below,

It is stated that the Applicant, in terms of Regulation 36A of CIRP Regulations made publication in newspapers Millennium Post, Rastriya Sahara (Delhi edition—Covering Gurgaon, dated 11.04.2025) and The Financial Express, Malai Malar (Chennai edition, dated 11.04.2025) inviting the Prospective Resolution Applicants (PRAs) to submit their Expression of Interest (EOI) for the revival of the Corporate Debtor. Pursuant to issuance of Form G, EOIs were received from 6 eligible Prospective Resolution Applicants (PRAs) namely, (i) Kundan Refinery Private Limited, (ii) Consortium lead by Mr. Ravindra Dhariwal & 5 other individuals, (iii) Real Value Infotech Projects Pvt. Ltd., (iv) Rupa & Company Limited, (v) Sunrise Industries and (vi) AKB Ventures Private Limited. The RFRP dated 27.05.2025 was shared with the PRAs. Thereafter, the Applicant received two Resolution Plans, one from Real Value Infotech Projects Pvt Ltd., Delhi and the other from Mr. Ravindra Dhariwal, Lead Partner of Consortium, consisting of 6 individuals including Mr. B. G. Krishnan, the Suspended Director of the Corporate Debtor, Ms. G. Ganga, an employee of the Corporate Debtor, Mr. R. Sri Ram, Ex-employee of the Corporate Debtor, Ms. Bella Manoj, Ex-employee of the Corporate Debtor, and Mr. Kishan Rajawat, Ex-employee of the Corporate Debtor.

It is stated that the Resolution Plans received were deliberated upon by the CoC in the 6^th and 7^th CoC meeting held on 23.07.2025 and 18.08.2025. It was found that both the plans were not in accordance with IBC, 2016 and RFRP. Real Value Infotech Projects Pvt Ltd did not submit the Earnest Money Deposit of Rs. 25,00,000 with the Resolution Plan as stipulated in the RFRP. Similarly, the Resolution Plan submitted by the Consortium led by Mr. Ravindra Dhariwal, provided for taking over the business assets of the Corporate Debtor alone and not the Corporate Debtor itself. In such a case, the Corporate Debtor would have to be liquidated separately after all its assets are taken over under the Resolution Plan. Further, none of the PRAs was interested in submitting a revised plan with enhanced plan value.

It is stated that, in the 7^th CoC meeting held on 18.08.2025, the CoC with 100% voting resolved to liquidate the Corporate Debtor in terms of Section 33(2) of IBC, 2016.

During the hearing on 23.09.2025, the Applicant was directed to file the details as to the constitution / reconstitution of CoCs, party-wise claims received, and the basis of reconstitution of the CoC. In compliance of the same, the Applicant filed a Memo vide S.R. No.4172 dated 01.10.2025. The submissions made by the Applicant are as under:

Subsequent to the Applicant taking the charge, she verified the Books of Accounts and other records of the Corporate Debtor. During the process, the Applicant noticed that Paragon Advisors Partners LLP, was a related party to the Corporate Debtor as two Directors of Paragon Partners LLP were the Ex Directors of the Corporate Debtor. Hence, the Corporate Debtor was accustomed to act on the advice and direction of the said Directors who were involved in the policy making process of the Corporate Debtor.

The Applicant had sought explanation from Paragon Advisors Partners LLP vide e-mail dated 06.03.2025 for which the response was issued by Paragon Advisors Partners LLP vide e-mail dated 12.03.2025. However, the same was found to be not satisfactory. Accordingly, the Applicant vide e-mail dated 24.03.2025 classified Paragon Advisors Partners LLP as related party. The Applicant had also filed IA No. 568 of 2025 to take on record the reconstituted Committee of Creditors and the same was taken on record vide order of this Tribunal dated 16.04.2025.

Prior to the commencement of CIRP on 09.12.2024, there were 6 Financial Creditors i.e., 1) TATA Capital Finance Services Ltd., 2) Paragon Advisors Partners LLP, 3) Klub Works Pvt Ltd., (MITCON Credential Trusteeship Service Ltd., 4) Instant Autogas Equipment Mfg. Pvt Ltd., 5) Footprint Leisure Pvt Ltd., and 6) Mr. Balan Gopala Krishnan. Out of the 6 financial creditors, Balan Gopala Krishnan i.e., the Suspended Director of the Corporate Debtor, Footprint Leisure Pvt Ltd wherein the wife of Balan Gopala Krishnan is the Director and Paragon Advisors Partners LLP are the related parties. Mr. Balan Gopala Krishnan and Footprint Leisure Pvt Ltd also declared that they are related parties in their claim form.

TATA Capital Finance Services Ltd was a financial creditor whose dues were declared in the Section 10 Application. However, when the erstwhile IRP contacted the TATA Capital Finance Services Ltd regarding its claim, it informed vide e-mail dated 23.12.2024 that it has sold OCD1 and OCD3 to Paragon Advisors LLP., Instant Autogas Equipment Mfg. Pvt Ltd., and Mr. B.G. Krishnan. With respect to OCD2, it liquidated the lien marked on the fixed deposits created as security by third party debenture trustee Ivycap Ventures Advisor Pvt Ltd. Hence, TATA Capital Finance Services Ltd informed that no claim is pending against the Corporate Debtor on the date of commencement of Insolvency. For this reason, TATA Capital Finance Services did not submit its claim.

During the hearing on 13.10.2025, it was submitted by the Applicant that the patents registered in favour of the Corporate Debtor have expired and presently hold no value. This fact has been accounted for in the valuation report. It was also submitted that the CIRP cost has been paid in full. This Tribunal then observed that the minutes of the 7^th CoC meeting does not have any resolution pertaining to the fees payable to the Liquidator and the creditors responsibility for the payment of fees and other liquidation expenses. Hence, this Tribunal directed the Applicant to place the matter before the CoC for a decision in this regard.

Pursuant to the directions of this Tribunal, the Applicant filed Memo dated 10.11.2025 vide SR. No .4740. The Applicant made the submissions as follows:

The Applicant called for the 9^th COC meeting to place the agenda for discussion by notice dated 22.10.2025.

In the 9^th COC meeting held on 28.10.2025, the COC discussed on the liquidator's fee and the manner in which liquidation expenses will be borne by the COC members, The Applicant apprised the CoC about the email correspondence with the proposed Liquidator confirming the fee structure. Accordingly, the CoC with 100% voting resolved that a consolidated fee of Rs. 5,00,000/-(Rupees Five Lakhs only) will be paid to the liquidator. The resolution passed by the CoC is extracted hereunder,

It was also resolved that in view of cash flow considerations, Instant Auto Gas Equipment Mfg Pvt Ltd (holding 73.74% voting share) will initially bear the liquidation-related expenses, which shall be reimbursed proportionately by MITCON Credentia Trusteeship Services Ltd (with 26.26% voting share), as mutually agreed.

With respect to Patent registered in favour of the Corporate Debtor, it is stated that during CIRP process, the Applicant sought for the Patent details from the suspended director. In response, the suspended director vide e-mail dated 07.03.2025 forwarded the e-mail of the Patent Attorney. The Patent Attorney has stated that patents of the Corporate Debtor were either refused, lapsed or not renewed. Further, outstanding dues to the Patent attorney were Rs. 4,53,640/- by the Corporate Debtor in relation to the patent matters. As the primary patents had expired and the Corporate Debtor was not having funds, the patents were not renewed.

We have heard the Counsel and perused the record.

It is seen that the CIRP was initiated against the Corporate Debtor vide order of this Tribunal dated 09.12.2024 in CP(IB)/177(CHE)/2024. Thereafter, the CIRP period was extended by 90 days i.e., till 06.09.2025 vide order of this Tribunal dated 12.06.2025 in IA (IBC) 907/2025. This application has been filed on 05.09.2025.

It is seen from the records that the Committee of Creditors in the 7th CoC meeting held on 18.08.2025 unanimously resolved to liquidate the Corporate Debtor In such circumstances, this Adjudicating Authority concludes that this application be allowed. As a consequence, thereof, we order the Liquidation of the Corporate Debtor as per Section 33(2) of IBC, 2016. In the instant case, the COC has recommended the name of Mr. L. Bhadri to act as a liquidator. He has also given his consent. The details of the resolution passed by the CoC in the 7th CoC meeting is extracted below,

We hereby appoint L. Bhadri, with Reg. No. IBBI/IPA-001/IPP-02059/2020-2021/13245 as the Liquidator of the Corporate Debtor, to carry out the liquidation process subject to the following terms of the directions.

The Liquidator shall be paid a consolidated fee of Rs. 5,00,000/- (Rupees Five Lakhs only) by the SCC members in the manner resolved in the 9^th COC meeting held on 28.10.2025. The relevant portion of the minutes of the 9^th CoC meeting is extracted below,

The Registry is directed to communicate this order to the Registrar of Companies and to the Insolvency and Bankruptcy Board of India;

The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence.

Copy of this order be sent to the financial creditors, Corporate Debtor and the Liquidator for taking necessary steps and for extending the necessary co-operation in relation to the Liquidation process of the Corporate Debtor.

With the above said directions, the IA(IBC)(LIQ)/22/CHE/2024 filed for Liquidation of the Corporate Debtor stands allowed.