# In the matter of Blossoms Oils & Fats Limited C.A. No 168-2017 In C.P.(IB) No. 23-10-HDB-2017

> NCLT judgment dated 2017-10-10. Citation: TCN-2017-NCLT-00302. 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-00302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blossoms-oils-fats-limited-ca-no-168-2017-in-cpib-no-23-10-hdb-2017-6566f07d

## 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 its finished products (i.e., RBD palmolien) under the brand name "POSHAK." The corporate debtor defaulted on dues to the financial creditors, with the total default amounting to Rs.318.28 crores as of the date of filing the application. The Indian Overseas Bank/Financial Creditor issued a possession notice dated 09-03-2016 to the Corporate Debtor directing to pay the dues under the SARFAESI Act 2002. The Adjudicating Authority admitted the application filed under Section 10 of IBC on 22.03.2017, and appointed Mr. Arun Kumar Malani as Interim Resolution Professional (IRP). The IRP

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## Facts

M/s. Blossoms Oils & Fats Limited, incorporated on 20-08-1998, primarily markets RBD palmolien under the brand "POSHAK". The company's operations span across Puducherry, Karnataka, Tamil Nadu, Maharashtra, and the former Andhra Pradesh. Their refinery unit, established near Kakinada in Puducherry, commenced commercial production in 2002 with a 75-tonne daily capacity. The Corporate Debtor defaulted, with total dues of Rs.318.28 crores as of the application date, including Rs.285.56 crores owed to secured creditors and Rs.32.72 crores to unsecured creditors. Indian Overseas Bank issued a possession notice on 09-03-2016, demanding payment under the SARFAESI Act 2002, following a demand notice dated 21-12-2015 for Rs.269.66 crores. Indian Bank classified the

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## Issues and analysis

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

**Ratio:** Section 33(1) of the IBC 2016 states that where the Adjudicating Authority does not

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**Reasoning:** The Adjudicating Authority noted that the Resolution Plan submitted by the Corporate

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**Interpretation:** Section 33(1) mandates liquidation if no resolution plan is approved. The

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**Application:** The Resolution Plan was rejected, and no new plan was submitted. Therefore,

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## Parties

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

## Timeline

- **1998-08-20 — Incorpor…**: M/s. Blossoms Oils & Fats Limited was…
- **2002-01-01 — Commercial Pr…**: The refinery unit of the Company commenced…

## 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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