# In the matter of Dunn Foods Private Limited CA No. 34-2018 IN CP (IB) No. 16-Chd-Pb-2017

> NCLT judgment dated 2018-02-06. Citation: TCN-2018-NCLT-01872. The case pertains to the insolvency resolution process of Dunn Foods Private Limited. The…

- **Court:** NCLT
- **Order date:** 6 Feb 2018
- **Citation:** TCN-2018-NCLT-01872
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dunn-foods-private-limited-ca-no-34-2018-in-cp-ib-no-16-chd-pb-2017-a8d1b645

## Summary

### Background

The case pertains to the insolvency resolution process of Dunn Foods Private Limited. The Corporate Debtor filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, which was admitted on 02.05.2017. Krishan Vrind Jain was appointed as the Interim Resolution Professional. Subsequently, Punjab National Bank, a financial creditor, applied for the replacement of the Interim Resolution Professional, proposing Nipan Bansal, who was then appointed. The resolution process period of 180 days, extendable by 90 days, expired without a resolution plan being received.

## Facts

Dunn Foods Private Limited initiated insolvency proceedings under Section 10 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on May 2, 2017. Krishan Vrind Jain was initially appointed as the Interim Resolution Professional (IRP), but was later replaced by Nipan Bansal upon application by Punjab National Bank, a financial creditor. The 180-day insolvency resolution process period, extended by 90 days, expired without any resolution plan being received. The Committee of Creditors (CoC) then decided on January 16, 2018, to proceed with the liquidation of Dunn Foods Private Limited, seeking approval from the NCLT Chandigarh. The CoC also decided to appoint Nipan Bansal as the liquidator. The NCLT considered the provisions of the Code regarding the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of a resolution plan within …

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

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**Reasoning:** The court reasoned that the insolvency resolution process period, including the

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that liquidation is the default

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**Application:** Since Dunn Foods Private Limited did not receive a resolution plan within the

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## Parties

- **Judges:** R.P.Nag…
- **Respondents:** Dunn Foods…; Punjab National…

## Timeline

- **2017-05-02 — Admission of…**: The petition filed by the Corporate-Debtor under Section 10 of the Insolvency and…
- **2017-09-26 — Appointment of Nipan…**: Mr. Nipan Bansal was appointed as…

## 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)

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