# In the matter of Advance Navotpad Surfactants Ltd. C.A. 177 (PB) -2019 in Company Petition No. (IB)-441 (PB) -2018

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-01986. The case pertains to an application filed by the Resolution Professional under Section 33(2) of…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-01986
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-navotpad-surfactants-ltd-ca-177-pb-2019-in-company-petition-no-ib-441-pb-13c6534e

## Summary

### Background

The case pertains to an application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, M/s. Advance Navotpad Surfactants Limited. The financial creditor, Bank of India, had initially filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, which was admitted on 27.09.2018. Mr. Sethurathnam Ravi was appointed as the Interim Resolution Professional (IRP). The Interim Resolution Professional invited claims from creditors, with only one claim received from Bank of India. The Committee of Creditors (CoC) was constituted with Bank of India as the sole member. The Interim

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## Facts

Bank of India, the financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Advance Navotpad Surfactants Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 27.09.2018. Mr. Sethurathnam Ravi was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional. Only one claim was received from Bank of India. The Committee of Creditors (CoC) consisted solely of Bank of India. Two registered valuers were appointed for asset valuation, and D. K. Lodha & Co. was appointed as Forensic Auditor. An Expression of Interest (EOI) was invited, and M/s KMG Industrial Traders Private Limited initially submitted an EOI but later withdrew. An extension of the CIRP

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court reasoned that the resolution process had failed, no viable resolution plan was

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP fails and no resolution

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**Application:** Given the failure of the resolution process and the expiry of the statutory

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Sethurathna…
- **Respondents:** M/s Advance…; Pankaj…

## Timeline

- **2018-09-27 — Admission of Section 7…**: The Tribunal admitted the application filed by Bank of India under Section 7 of the IBC,…
- **2018-10-29 — Appointment as…**: The Interim Resolution Professional was…

## Legal provisions

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

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