# 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-02042. The case involves an application filed by the Resolution Professional (RP) seeking a…

- **Court:** NCLT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLT-02042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhay-nutrition-pvt-ltd-in-ma-78-2020-cpib-3799-mb-2018-f2b12fc7

## 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 is 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) commenced on 02.04.2019, with the admission order passed on the same date, and Mr. Vikas Gupta was appointed as the Interim Resolution Professional (IRP). The IRP issued a public notice on 06.04.2019 inviting claims from creditors. The IRP collated the claims and determined the admitted claims against the company as Rs. 186.63 Crores. The RP issued invitation for Expression of Interest on 15.06.2019, which was extended multiple times

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Abhay Nutrition Pvt Ltd, commencing on 02.04.2019. Responsibility Fair Agriculture Fund is the applicant. Mr. Vikas Gupta was appointed as the Interim Resolution Professional (IRP). A public notice was issued on 06.04.2019, inviting claims from creditors. The IRP determined the admitted claims to be Rs. 186.63 Crores. The RP issued an invitation for Expression of Interest on 15.06.2019, which was extended multiple times. Only one Resolution Applicant filed a Resolution Plan on 05.11.2019, but it was rejected due to failure to provide the required bid guarantee. The Committee of Creditors (COC) approved a resolution for liquidation on 17.12.2019 with 100% voting share. The RP determined the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated under Section 33 of the Insolvency and Bankruptcy …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code allows for the liquidation of a

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**Reasoning:** The court reasoned that despite efforts to find a resolution plan, none was compliant

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**Interpretation:** Section 33 is interpreted to mean that if all attempts to revive the corporate

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**Application:** Since no resolution plan was compliant with Section 30(2), the court applied

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## Parties

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

## Timeline

- **2019-04-02 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **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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