# In the matter of Chowel India Private Limited IA-610-CHE-2021 in IBA-1121-2019

> NCLT judgment dated 2021-11-29. Citation: TCN-2021-NCLT-00378. The case involves an application (IA/610/CHE/2021) filed in the matter of the insolvency…

- **Court:** NCLT
- **Order date:** 29 Nov 2021
- **Citation:** TCN-2021-NCLT-00378
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chowel-india-private-limited-ia-610-che-2021-in-iba-1121-2019-a4ed545d

## Summary

### Background

The case involves an application (IA/610/CHE/2021) filed in the matter of the insolvency resolution process of M/s. Chowel India Private Limited (IBA/1121/2019). The applicant, Nithiyanantham Ramachandran, the Resolution Professional (RP), sought an order for the liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the RP was appointed on 05.05.2020. Public announcement was made, and the Committee of Creditors (CoC) was constituted. Several CoC meetings were held, and ultimately, the CoC decided with 100% majority to liquidate the Corporate Debtor, as they believed the company was not operating and there was no visibility of revival.

## Facts

M/s. Chowel India Private Limited underwent Corporate Insolvency Resolution Process (CIRP). Nithiyanantham Ramachandran was appointed as the Resolution Professional (RP) on 05.05.2020. Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was constituted on 24.10.2019. Several CoC meetings took place. The 4th CoC meeting was cancelled due to lockdown. In the 5th CoC meeting on 07.12.2020, further steps on the CIRP were discussed. The CIRP period was extended by excluding the Covid-19 lockdown period up to 15.10.2020. In the 8th CoC meeting on 28.04.2021, with 100% majority, a decision was made to liquidate the Corporate Debtor. The CoC viewed that the Corporate Debtor was not operating and there was no visibility of revival.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Chowel India Private Limited, should be ordered for liquidation …

**Ratio:** Section 33(1)(a) of the IBC, 2016 allows for the liquidation of a corporate debtor when

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**Reasoning:** The CoC, with a 100% majority, decided to liquidate the Corporate Debtor, M/s. Chowel

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**Interpretation:** Section 33(1)(a) of the IBC, 2016 provides the legal basis for initiating

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**Application:** Given the CoC's decision and the company's operational status, the NCLT applied

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Nithiyanantham…
- **Respondents:** M/s. Chowel India…

## Timeline

- **2019-04-01 — Closure of…**: Plant 2 of M/s. Chowel India…
- **2019-05-01 — Handover of Lea…**: Leased items, including the Factory Premises of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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