# In the matter of Bhareth Formulations Private Limited IA-505-IB-2020 in CP-1174-2019

> NCLT judgment dated 2020-08-05. Citation: TCN-2020-NCLT-00896. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Aug 2020
- **Citation:** TCN-2020-NCLT-00896
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhareth-formulations-private-limited-ia-505-ib-2020-in-cp-1174-2019-2a2e0dbb

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of M/s. Bhareth Formulations Private Limited, the Corporate Debtor. The application was filed by the Resolution Professional (RP) following a resolution passed by the Committee of Creditors (CoC) in its 5th meeting. The Corporate Debtor's CIRP was initiated on 20.03.2019, and the Applicant was appointed as Interim Resolution Professional (IRP) on the same date. A public announcement was made on 22.03.2019, calling for claims from the creditors. The CoC was constituted on 08.04.2019, and its first meeting was held on 15.04.2019. The RP visited the registered office of the Corporate Debtor and found no office registered in the

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## Facts

The Corporate Debtor, M/s. Bhareth Formulations Private Limited, faced Corporate Insolvency Resolution Process (CIRP) initiated on 20.03.2019. Ms. Revathi Sridharan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). A public announcement was made on 22.03.2019, inviting claims from creditors. The Committee of Creditors (CoC) was formed on 08.04.2019. The RP discovered that the Corporate Debtor's registered office was no longer operational, having been sold, with the proceeds used to repay the Financial Creditor (Bank of India). The Corporate Debtor's accounts were only available up to 31.03.2014, with subsequent records reportedly destroyed in floods in December 2015. All bank accounts of the Corporate Debtor were

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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 CoC had resolved to liquidate the Corporate Debtor, and no

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**Interpretation:** Section 33(2) is interpreted to mean that if a resolution plan fails or the CoC

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**Application:** Given the CoC's decision and the lack of assets, the court applied Section

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## Parties

- **Judges:** R. Sucha…; S. VIJAYARA…
- **Appellants:** Revathi Sri…
- **Respondents:** Bhareth Formulatio…

## Timeline

- **2019-03-20 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for M/s. Bhareth Formulations…
- **2019-03-20 — Appointment…**: Ms. Revathi Sridharan appointed as…

## 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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