# In the matter of Chincholi Sugar & Bio Industries Ltd. I.A. No. 651-2019 in C.P. (IB) No. 67-BB-2019

> NCLT judgment dated 2019-12-19. Citation: TCN-2019-NCLT-00076. The case involves an application (I.A. No.651 of 2019) filed in C.P. (IB) No.67/BB/2019 under…

- **Court:** NCLT
- **Order date:** 19 Dec 2019
- **Citation:** TCN-2019-NCLT-00076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chincholi-sugar-bio-industries-ltd-ia-no-651-2019-in-cp-ib-no-67-bb-2019-2609b2ad

## Summary

### Background

The case involves an application (I.A. No.651 of 2019) filed in C.P. (IB) No.67/BB/2019 under Sections 33(1)(a) and 34(1) of the Insolvency and Bankruptcy Code (IBC), 2016, and related regulations, seeking the liquidation of the Corporate Debtor, M/s. Chincholi Sugar and Bio Industries Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application filed by Punjab National Bank under Section 7 of the IBC. The Committee of Creditors (CoC) was formed, and efforts were made to find a resolution plan. However, the resolution plan submitted by Natems Sugar Private Limited was not approved by the CoC with the required majority. Consequently, the applicant sought a liquidation order.

## Facts

Punjab National Bank initiated CIRP against M/s. Chincholi Sugar and Bio Industries Limited under Section 7 of IBC. The CIRP commenced, and Mr. Madhusudhan Rao Gonugunta was appointed as the Interim Resolution Professional (IRP). The IRP made public announcements and constituted the Committee of Creditors (CoC). The CoC held several meetings to explore resolution options, including inviting Expression of Interest (EOI) and considering resolution plans. A resolution plan was submitted by Natems Sugar Private Limited. However, the CoC did not approve the resolution plan with the required majority (91.51% voting rights against). The CIRP period, including the extended period of 270 days, expired on 09.12.2019. As no resolution plan was approved, the Resolution

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Chincholi Sugar and Bio Industries Limited, should be liquidated …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016 mandates that if no

…

**Reasoning:** The Adjudicating Authority reasoned that the CIRP period, including the extended period,

…

**Interpretation:** Section 33(1) of the IBC is interpreted strictly to mean that if a resolution

…

**Application:** In this case, the application of Section 33(1) to the facts meant that because

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** G. Madhusud…
- **Respondents:** M/s. Chincholi…

## Timeline

- **2019-03-15 — CIRP Init…**: The Adjudicating Authority admitted CP (IB) No.67/BB/2019 filed by Punjab National Bank…
- **2019-03-23 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement in three newspapers…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/chincholi-sugar-bio-industries-ltd-ia-no-651-2019-in-cp-ib-no-67-bb-2019-2609b2ad