# In the matter of Chandra Royal Inn Private Limited MA-594-2019 in CP-749-IB-2018

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02772. The case pertains to an application filed under sections 33(1)(a), 33(2) & 34(1) of the IBC,…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chandra-royal-inn-private-limited-ma-594-2019-in-cp-749-ib-2018-12ed843f

## Summary

### Background

The case pertains to an application filed under sections 33(1)(a), 33(2) & 34(1) of the IBC, 2016, regarding M/s. Chandra Royal Inn Private Limited. The Corporate Debtor underwent a Corporate Insolvency Resolution Process (CIRP). The applicant was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP received four claims, including those from SIDBI (Financial Creditor) and State Tax Officer, Nagapatinam (Operational Creditor). The RP approved the claims of SIDBI and the State Tax Officer but rejected the claims of unsecured financial creditors due to non-compliance with IBBI regulations. The RP appointed registered valuers, determined the liquidation value, and published an invitation for Expression

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## Facts

M/s. Chandra Royal Inn Private Limited underwent CIRP. The applicant, Mr. Tharuvai Ramachandran Ravichandran, was appointed as IRP and later confirmed as RP. The RP received four claims, including SIDBI (Financial Creditor) and State Tax Officer, Nagapatinam (Operational Creditor). The RP approved claims of SIDBI and State Tax Officer but rejected claims of unsecured financial creditors due to non-compliance with Regulation 7 & 8 of the IBBI (IRPCP) Regulations, 2016. The RP appointed two Registered Valuers and determined the liquidation value as ₹4.86 crores. The RP published an invitation for Expression of Interest (EOI) in 'Indian Express' and 'Dinamani'. Only one conditional resolution plan was received and rejected by the CoC. The CoC, in its 6th meeting on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the failure of the CIRP to produce a …

**Ratio:** Liquidation is permissible when no viable resolution plan is presented within the

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**Reasoning:** The court observed that despite efforts to find a resolution, no proper resolution plan

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**Interpretation:** The IBC aims to resolve insolvency through resolution plans. However, when

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**Application:** Since no viable resolution plan was presented, the court applied the principle

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Respondents:** M/s. Chandra…

## Timeline

- **2018-09-06 — Admission o…**: The case was admitted, and the…
- **2018-10-05 — Confirmatio…**: The applicant was confirmed as RP…

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