# In the matter of Diabari Tea Co. Ltd. CP No. 399-KB-2017

> NCLT judgment dated 2020-03-11. Citation: TCN-2020-NCLT-01596. The case involves K.N. Chowdhury & Co. Pvt. Ltd. filing a petition against Diabari Tea Co. Ltd.…

- **Court:** NCLT
- **Order date:** 11 Mar 2020
- **Citation:** TCN-2020-NCLT-01596
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diabari-tea-co-ltd-cp-no-399-kb-2017-e52d9de6

## Summary

### Background

The case involves K.N. Chowdhury & Co. Pvt. Ltd. filing a petition against Diabari Tea Co. Ltd. under the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) appointed for Diabari Tea Co. Ltd. was unable to resolve the stressed assets of the Corporate Debtor due to a lack of information about its assets. The RP also indicated that the Corporate Debtor's tea estate was taken over by the District Magistrate before the CIRP initiation, and the leasehold right of the tea garden had expired. The registered office was closed, and directors were untraceable, preventing access to the Corporate Debtor's books of account. The Committee of Creditors (CoC) decided to seek an extension of the CIRP, but the RP ultimately filed a Final Progress Report

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## Facts

K.N. Chowdhury & Co. Pvt. Ltd. initiated proceedings against Diabari Tea Co. Ltd. under the IBC. A Resolution Professional (RP) was appointed but faced difficulties in resolving the Corporate Debtor's stressed assets. Key facts include the RP's inability to publish an Expression of Interest (Eol) due to a lack of information about the assets. The Corporate Debtor's tea estate was under the possession of the District Magistrate, Alipurduar, before the CIRP initiation. The leasehold right of the tea garden had expired. The registered office of the Corporate Debtor was closed, and its directors were untraceable. The CoC decided to seek an extension of the CIRP beyond 180 days, but the RP ultimately requested liquidation. The RP was unable to trace any assets of the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Diabari Tea Co. Ltd., should be liquidated under the Insolvency and …

**Ratio:** The legal principle applied is that if a Corporate Debtor's assets cannot be traced or

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**Reasoning:** The court reasoned that the Resolution Professional's reports indicated a complete

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Jinan…
- **Appellants:** K.N. Chowdhury &…
- **Respondents:** Diabari Tea Co.…

## Timeline

- **2019-12-06 — CoC Meet…**: The Committee of Creditors (CoC) unanimously decided to get an order of extension of the…
- **2020-03-11 — Hearing…**: Hearing held on March…

## 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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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/diabari-tea-co-ltd-cp-no-399-kb-2017-e52d9de6