# In the matter of Abhay Nutrition Pvt. Ltd.  in MA 78-2020 C.P.(IB)- 3799-(MB)-2018

> NCLT judgment dated 2020-02-07. Citation: TCN-2020-NCLT-02036. The case involves an application filed by the Resolution Professional (RP) seeking a…

- **Court:** NCLT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLT-02036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhay-nutrition-pvt-ltd-in-ma-78-2020-cpib-3799-mb-2018-3e860715

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking a liquidation order under Section 33 of the Insolvency and Bankruptcy Code (IBC). The application was based on a resolution passed by the Committee of Creditors (COC) on 17.12.2019 with a 100% voting share. The Corporate Insolvency Resolution Process (CIRP) had commenced on 02.04.2019, with Mr. Vikas Gupta appointed as the Interim Resolution Professional (IRP). The IRP issued a public notice inviting claims from creditors. The IRP collated the claims and determined the admitted claims against the company as Rs. 186.63 Crores. The RP was confirmed on 30.04.2019. The RP issued an invitation for Expression of Interest, which was extended multiple times due to lack of response. Eventually,

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## Facts

The Corporate Insolvency Resolution Process (CIRP) commenced on 02.04.2019 following an admission order on the same date. Mr. Vikas Gupta was appointed as the Interim Resolution Professional (IRP). A public notice was issued on 06.04.2019 to invite claims from creditors. The IRP collated claims, determining admitted claims against the company to be Rs. 186.63 Crores. The IRP was confirmed as the Resolution Professional (RP) on 30.04.2019. An invitation for Expression of Interest was issued on 15.06.2019, and extended multiple times (05.07.2019, 16.07.2019, 10.08.2019) due to lack of response. One Resolution Applicant filed a plan on 05.11.2019, but it was rejected for failing to provide the required bid guarantee. The CIRP period was extended by 90 days on 24.10.2019

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the Insolvency and Bankruptcy Code …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code allows for liquidation when no

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**Reasoning:** The court reasoned that since no resolution plan compliant with Section 30(2) of the Code

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** The absence of a compliant resolution plan, coupled with the COC's approval,

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Responsibility…
- **Respondents:** Abhay Nutrition…

## Timeline

- **2019-04-02 — CIRP Commen…**: CIRP commenced with the…
- **2019-04-02 — Appointment…**: Mr. Vikas Gupta appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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