# In the matter of K.S. Chowdry vs. Mummaneni Vazra Laxmi

> NCLAT judgment dated 2025-04-30. Citation: TCN-2025-NCLAT-00076. The case involves a Company Appeal concerning the initiation of liquidation proceedings…

- **Court:** NCLAT
- **Order date:** 30 Apr 2025
- **Citation:** TCN-2025-NCLAT-00076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ks-chowdry-vs-mummaneni-vazra-laxmi-4e8de49f

## Summary

### Background

The case involves a Company Appeal concerning the initiation of liquidation proceedings against M/s. Ravi Cranes and Movers Limited, the Corporate Debtor (CD). CIRP was initiated against the principal borrower, M/s. RCM Infrastructure Limited, and subsequently against Ravi Cranes and Movers. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor after CIRP proceedings could not be successfully completed. An intervention application was filed by M/s. Maximus ARC Limited, the assignee of the debt of Union Bank of India, seeking to keep the liquidation in abeyance to explore alternative resolution avenues. The Adjudicating Authority ordered liquidation, leading to the present appeal.

## Facts

The Corporate Debtor, M/s. Ravi Cranes and Movers Limited, faced CIRP proceedings initiated by Indian Overseas Bank on 2022-09-26. Mummaneni Vazra Laxmi was appointed as the Interim Resolution Professional (IRP). The CIRP period was extended to allow for resolution plans, but these efforts failed. On 2024-04-08, the CoC resolved to liquidate the Corporate Debtor with 100% voting shares. An application for liquidation was filed under Section 33(2) of the I&B Code. Maximus ARC Limited, assignee of Union Bank of India's debt with 61.38% voting share, filed an intervention application on 2024-09-05, seeking to keep the liquidation in abeyance to explore alternative resolution. The Adjudicating Authority reserved its order on the liquidation application on 2024-09-02

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## Issues and analysis

### Issue 1: Whether the pendency of an Interlocutory Application seeking to intervene in the proceedings could …

**Ratio:** The decision of the Committee of Creditors (CoC) to liquidate the Corporate Debtor, made

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**Reasoning:** The Adjudicating Authority considered the CoC's decision to liquidate, which was made

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**Interpretation:** Section 33(2) of the I&B Code allows the Resolution Professional to

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**Application:** In this case, the CoC had already resolved to liquidate the Corporate Debtor

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Mr.K.S.Ch…
- **Respondents:** M/s. Ravi Cranes…; MUMMANENI VAZRA…

## Timeline

- **2019-01-03 — CIRP Initiation against…**: CIRP proceeding initiated against M/s. RCM Infrastructure Limited by an order passed by…
- **2022-02-07 — Refusal of CIRP…**: Extension of CIRP was refused, and liquidation was ordered in respect of the principal…

## 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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