# In the matter of Drupa Suppliers Pvt. Ltd. IA-59(AHM)2021in CP(IB) 730 of 2019

> NCLT judgment dated 2021-02-17. Citation: TCN-2021-NCLT-03021. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 17 Feb 2021
- **Citation:** TCN-2021-NCLT-03021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/drupa-suppliers-pvt-ltd-ia-59ahm2021in-cpib-730-of-2019-f32e3e9d

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC) for the liquidation of Drupa Suppliers Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and a Committee of Creditors (COC) was constituted. No Expression of Interest (EOI) was received, leading the COC to resolve for liquidation. The application for liquidation was filed by the Resolution Professional (RP).

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Drupa Suppliers Pvt Ltd, with the case being admitted on 2020-10-08. After the appointment of an Interim Resolution Professional (IRP), a public announcement was made to invite claims from creditors. A Committee of Creditors (COC) was formed, consisting of four financial creditors. Since no Expression of Interest (EOI) was received, the COC decided to proceed with the liquidation of the Corporate Debtor. All members of the COC voted in favor of liquidation. The Resolution Professional (RP) then filed an application under Section 33 of the IBC for an order of liquidation. The meeting where the decision to liquidate was taken occurred on 2021-01-01. The Adjudicating Authority considered the

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the IBC should be allowed given the …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) is paramount, and the

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**Reasoning:** The court reasoned that the COC, comprising financial creditors, is best positioned to

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**Interpretation:** Section 33 of the IBC allows for liquidation when a resolution plan is not

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**Application:** Given the COC's decision to liquidate due to the lack of an EOI, the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Drupa Suppliers…; Ajaykumar…

## Timeline

- **2020-10-08 — Admission o…**: C.P. (IB) 730/2019 was admitted, initiating the Corporate Insolvency Resolution Process…
- **N/A — Public Annou…**: A public announcement was made under Section 15 of the Code, inviting claims from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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