# In the matter of Blossom Oils & Fats Limited C.P. (IB) No. 23-10-HDB-2017

> NCLT judgment dated 2017-10-10. Citation: TCN-2017-NCLT-00299. The case involves M/s. Blossoms Oils & Fats Limited, a corporate debtor, which was incorporated…

- **Court:** NCLT
- **Order date:** 10 Oct 2017
- **Citation:** TCN-2017-NCLT-00299
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blossom-oils-fats-limited-cp-ib-no-23-10-hdb-2017-106e5699

## Summary

### Background

The case involves M/s. Blossoms Oils & Fats Limited, a corporate debtor, which was incorporated as a Limited Company on 20-08-1998. The company's main business is marketing finished products (i.e., RBD palmolien) under the brand name "POSHAK." The company defaulted on dues to its Financial Creditors, with the total default amounting to approximately Rs. 318.28 crores. The Indian Overseas Bank/Financial Creditor issued a possession notice dated 09-03-2016 to the Corporate Debtor. The Adjudicating Authority admitted the application under Section 10 of IBC on 22-03-2017, and appointed Mr. Arun Kumar Malani as Interim Resolution Professional (IRP). The IRP issued a public announcement inviting claims from creditors. A Committee of Creditors (CoC) was formed,

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## Facts

M/s. Blossoms Oils & Fats Limited, incorporated on 20-08-1998, defaulted on payments to financial creditors, totaling Rs. 318.28 crores. Indian Overseas Bank (IOB) issued a possession notice on 09-03-2016. The loan account with Indian Bank was classified as a Non-Performing Asset (NPA) since 30-09-2015. The Adjudicating Authority admitted the application under Section 10 of IBC on 22-03-2017, appointing Mr. Arun Kumar Malani as Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed, holding meetings on 21-04-2017, 01-06-2017, 24-07-2017, and 19-08-2017. A CBI enquiry against the Corporate Debtor was pending. The Corporate Debtor's Resolution Plan was rejected by the CoC. The Financial Creditors, with 100% voting power, favored liquidation.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Blossoms Oils & Fats Limited, should be liquidated under the …

**Ratio:** Section 33(1) and 33(2) of the Insolvency and Bankruptcy Code, 2016, provide the

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**Reasoning:** The Resolution Plan submitted by the Corporate Debtor was rejected by the Financial

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**Interpretation:** Section 33 of the IBC allows for liquidation when resolution efforts fail. The

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**Application:** Since the Resolution Plan was rejected and the Financial Creditors favored

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## Parties

- **Judges:** Rajeswara Rao…; RavikumarDu…
- **Respondents:** M/s. Blossoms…; Indian Overseas…
- **Advocates:** Rajesh…; B.Praveen…; +2 more

## Timeline

- **1998-08-20 — Incorpor…**: M/s. Blossoms Oils & Fats…
- **2015-09-30 — NPA Classif…**: Loan account with Indian Bank…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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